FTX sued Bybit exchange for $228 million.
FTX's bankruptcy estate agreed to a $228 million settlement with BayBit Exchange on Oct. 24 in a legal filing, the first filed by FTX's estate in 2023, to get money to pay former customers and creditors.
According to the legal filing, the settlement agreement will allow FTX to divest $175 million in digital assets held by Baybit and sell approximately $53 million in Baybit tokens to Mirana Corporation – the investment arm of Baybit exchange. FTX's attorneys said their claims have merit, but further litigation is difficult.
“Plaintiffs' claims for transfer, violation of the automatic stay and fraudulent and preferred transfers are contentious, carry some degree of risk, and in any event further litigation would be time-consuming and expensive.”
The settlement agreement still needs to be approved by the court, and a hearing to approve the settlement between the two parties is set for November 20, 2024 at 2 p.m. Eastern.
FTX and Bybit settlement activity. Source: Bloomberg Law
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FTX loss property is charged by Bybit
FTX originally filed a $1 billion lawsuit against Bybit and Mirana in November 2023.
FTX bankruptcy attorneys Mirana and others were granted early exit privileges from the FTX group in the early stages of the collapse, which were tracked in a database.
Is FTX bankruptcy estate finally out of the woods?
The lawsuit against Bybit is one of many legal disputes that FTX's estate and legal counsel for the former exchange have been forced to navigate during the years-long bankruptcy process.
After FTX's reorganization plan was approved by Judge John Dorsey on October 7, 2024, FTX investors voluntarily dropped their lawsuit against Sullivan and Cromwell.
A group of FTX creditors alleged that the law firm knew and was complicit in FTX's fraud while receiving financial benefits from serving as legal counsel to the company.
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