FTX Launches Major Lawsuit Against Bybit to Recover $953 Million

Nov 12, 2023

온라인 슬롯 사이트

FTX is suing Bybit to recover nearly $1 billion, highlighting pressing governance issues in the crypto industry.

The Lawsuit Overview

FTX, a once-dominant player in the crypto exchange world, has turned the tables legally. They’re suing Bybit Fintech and two other companies, aiming to retrieve around $953 million. This sum represents cash and digital assets that vanished from FTX’s coffers before it filed for bankruptcy.

Details of the Accusation

Central to this lawsuit, filed in a Delaware court, is the allegation that Bybit, through its investment arm Mirana Corp., enjoyed “VIP” status. This privilege supposedly allowed Mirana to just as FTX was on the brink of collapse. FTX argues that while Mirana was quickly moving assets out, regular customers struggled to access their funds.

Recovering Assets

The lawsuit seeks to get back more than $327 million, reportedly moved by Mirana in the critical period just before FTX paused all withdrawals. The legal move is part of a broader strategy by FTX to regain lost funds, including taking action against various entities and individuals.

FTX’s Aggressive Recovery Tactics

Apart from Bybit, FTX has its legal sights set on other parties, including venture capitalists and even celebrities. They’re clawing back funds from various sources, including donations made to political figures and cultural institutions.

Bybit’s Response and FTX’s Allegations

Bybit, on the other hand, has its defense. FTX alleges Bybit imposed restrictions on withdrawing assets over $125 million and accused Bybit of using these assets as leverage. The lawsuit also brings to light claims about Bybit’s control over BitDAO, a supposedly decentralized organization, and their resistance to FTX’s bankruptcy provisions.

Implications for the Crypto Industry

This lawsuit is not just a financial battle; it’s a moment of reckoning for the cryptocurrency industry. It highlights the need for more robust governance and transparency in crypto exchanges. The outcome of this case could set a precedent for how digital assets are managed and protected in the event of a company’s failure.

The Ripple Effect on Investors and the Market

Investors and market watchers are keenly observing this lawsuit. The resolution will likely influence investor confidence in crypto exchanges. A favorable outcome for FTX could restore some trust in the market, while a loss might deepen concerns about the security and reliability of digital asset platforms.

Check out the latest Crypto News news bellow: