Bybit Fintech sued for $1 billion by the FTX bankruptcy team

• The FTX Bankruptcy is seeking to recover assets worth about $1 billion.
• The lawsuit will be heard by a Delaware Court.
• The funds in question were allegedly withdrawn from FTX.

FTX’s bankruptcy advisers have recently initiated legal action against Bybit Fintech and its affiliated companies, including Bybit’s investment arm, Mirana Corp.

The lawsuit, filed in a Delaware court, aims to recover approximately $953 million in cash and digital assets that were allegedly withdrawn from FTX just before its Chapter 11 bankruptcy filing a year ago.

Charges against Mirana Corp.

The lawsuit alleges that Mirana Corp. enjoyed special “VIP” benefits not available to regular FTX customers, exploiting these privileges to withdraw a substantial portion of assets from FTX. Mirana is accused of exerting pressure on FTX employees to fulfil its withdrawal requests while other customers faced delays accessing their funds as the exchange approached collapse in November 2022.

According to the complaint, Mirana withdrew over $327 million from FTX between the early morning of November 7 and November 8, 2022, during a critical period when FTX had paused withdrawals.

Bybit affiliates named in FTX’s Chapter 11 Bankruptcy lawsuit

Bybit Fintech Ltd., Mirana, and affiliated crypto trading firm Time Research Ltd. are listed as defendants in the bankruptcy lawsuit. Additionally, a senior Mirana executive and Singaporean residents allegedly involved in the FTX withdrawals are named in the legal proceedings.

FTX, under new management, is intensifying efforts to recover funds disbursed before its Chapter 11 filing. Legal actions have been initiated against various entities, including Kives and his venture capital firm, K5, to reclaim significant sums. FTX is also exploring the possibility of reclaiming funds donated to politicians, charitable organizations, and payments made to celebrities, such as Shaquille O’Neal and Naomi Osaka, for endorsing the platform.

This 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.