FTX bankruptcy trustees sued Bybit for more than 953 million dollars

FTX's liquidators have taken legal action against the Bybit crypto exchange and two other entities to recover $953 million in assets that were liquidated before its collapse.

The move follows recent efforts by insolvency practitioners to recover the funds from various parties.

Charge against Bybit

On November 10, bankruptcy counsel filed a lawsuit against Bybit and its investment arm, Mirana Corporation.

The filing states that Mirana Corporation had exclusive rights to withdraw assets from FTX and further claims that the company pressured FTX employees to facilitate these expenditures. The timing of Marina's asset exit coincided with the surge in liquidity leading to FTX's collapse.

Part of the file reads:

“Defendant Bybit also attempted to use its control over FTX Group assets as an additional source of leverage to force FTX.com to push Mirana to the front of the line. After the FTX.com exchange stopped withdrawing customers, Mirana was forced to withdraw its entire FTX.com account unless After they refused, Baybit seized the assets of FTX Group held on the Baybit exchange.

The main purpose of the suit is to recover approximately $953 million that Mirana withdrew from FTX, including more than $327 million that was allegedly taken between November 7 and 8 last year.

The lawsuit concerns another crypto trading firm, Time Research Ltd., and an executive at Mirana. It suggests that some Singaporeans may also benefit from these withdrawals.

FTX asset recovery efforts

The lawsuit is consistent with FTX's efforts to recover money spent in the months leading up to its collapse. According to the organization, this failure will allow for a fair distribution of assets to all those affected.

Since the bankruptcy proceedings began, FTX has recovered $7 billion worth of assets, including cryptocurrency, from various recovery efforts.

In addition to this, he filed various lawsuits including against former executives such as Sam Bankman-Fried, Caroline Ellison, Gary Wang and Nishad Singh.

The failed firm filed lawsuits against several firms, including K5 Global, who received money from it.

Meanwhile, FTX Estate is moving to increase its crypto holdings. The company has transferred more than $300 million worth of crypto assets to exchanges since November 8, including Solana and Ethereum.