The FTX bankruptcy estate has announced a $228 million settlement with the Bybit exchange, according to a legal filing made public on October 24th. The estate had previously sued the exchange in 2023 in an attempt to recover owed funds from creditors and former clients.
As part of the settlement deal, FTX will have the ability to sell $53 million worth of BIT tokens to Mirana Corp, an investment arm of Bybit. Additionally, FTX will be able to withdraw $175 million worth of digital assets from Bybit. FTX’s lawyers have stated that pursuing the matter in court would be too burdensome, even if their allegations are valid.
However, the court still needs to accept the settlement accord, and a hearing has been scheduled for November 20, 2024, to finalize the agreement.
In November 2023, FTX initially filed a lawsuit against Bybit and Mirana for $1 billion. The lawsuit claimed that the entities had preemptively withdrawn approximately $327 million worth of digital assets and cash using their privileged access and close relationship with FTX executives, just before FTX’s ultimate collapse. According to attorneys representing the FTX bankruptcy estate, Mirana and others were granted preferential withdrawal rights during the early stages of the collapse, which were documented in a database.
The bankruptcy proceedings have been plagued with legal conflicts, including the litigation against Bybit, which the FTX estate and legal counsel for the former exchange had to navigate. Furthermore, investors in FTX have voluntarily withdrawn their complaint against Sullivan & Cromwell, the law firm that had represented FTX in various transactions during its operation, following the approval of the restructuring plan by Judge John Dorsey.
In other crypto news today, Emory University has invested over $15 million in the Grayscale Bitcoin Mini ETF.