Bybit Fintech sued for $1 billion by FTX bankruptcy group
The FTX bankruptcy seeks to recover assets worth about $1 billion. The suit will be heard in a Delaware court. The funds in question were allegedly withdrawn from FTX.
FTX's insolvency advisers recently launched legal action against Bybit FinTech and its affiliates, including Bybit's investment arm Mirana Corporation.
The suit, filed in Delaware court, seeks to recover nearly $953 million in cash and digital assets allegedly taken from FTX before it filed for Chapter 11 bankruptcy a year ago.
Lawsuits against Mirana Corp
The lawsuit alleges that Mirana Corporation received special “VIP” benefits not available to regular FTX customers, and used these privileges to extract a significant portion of assets from FTX. Mirana is accused of pressuring FTX employees to comply with their withdrawal requests, as other customers face delays in accessing their funds as the exchange nears its collapse in November 2022.
According to the complaint, Mirana withdrew more than $327 million from FTX between November 7th and the morning of November 8th, 2022, the critical period when FTX terminated the termination.
Bybit affiliates named in FTX's Chapter 11 bankruptcy filing
Bybit Fintech Ltd., Mirana and affiliated crypto trading firm Time Research Ltd. are listed as defendants in the bankruptcy case. In addition, a senior Mirana executive and Singaporeans allegedly involved in the FTX withdrawal were named in the legal proceedings.
FTX, under new management, is intensifying its efforts to recover money owed before filing for Chapter 11. Legal action has been launched against various parties to recover significant sums of money against Kives and its capital company, K5. FTX is investigating the possibility of recovering funds paid to politicians, charities and celebrities such as Shaquille O'Neal and Naomi Osaka to support the platform.
The lawsuit represents the latest move in FTX's ongoing legal battles as it seeks to navigate the complexities of Chapter 11 bankruptcy and recover lost assets.
