FTX Reaches a $228M Settlement with Bybit: Report
The post FTX Reaches a $228M Settlement with Bybit: Report appeared on BitcoinEthereumNews.com.
The bankrupt FTX settles the lawsuit against Bybit for $228 million. The settlement allows FTX to recover $175 million in funds from Bybit. The lawsuit initially sought $953 million from Bybit and two corporate affiliates. The bankrupt crypto exchange FTX announced a $228 million settlement with Bybit on October 24th, ending a prolonged lawsuit that aimed to recover funds. A legal filing shows the settlement allows FTX to withdraw $175 million in digital assets from Bybit and sell approximately $53 million in BIT tokens to Bybit’s investment division, Mirana Corp. Back in November 2023, FTX filed a lawsuit against Bybit and two other corporate affiliates, claiming they unfairly profited from FTX. The lawsuit aimed to recover $953 million in funds and assets from FTX, Mirana Corp, and Time Research Ltd. The amount reflects the value of the withdrawn assets on November 1st. Read also: FTX’s FTT Token Defies Logic, Trading at $2 Despite Bankruptcy The settlement amount is significantly less than the $953 million FTX originally requested. Defendants who withdrew funds before the bankruptcy will receive creditor claims worth 75% of their account balances. FTX lawyers admitted further legal action would be difficult, even though they believed their claims were valid. They said: ” Plaintiffs’ claims for turnover, violations of the automatic stay, and fraudulent and preferential transfers are disputed, carry some degree of risk, and in any event would be time-consuming and expensive to further litigate.” Court Approval Pending for Settlement The settlement between FTX and Bybit requires court approval, with a hearing scheduled for November 20, 2024, at 2 PM Eastern Time. This is a crucial step to finalize the agreement and make it legally binding. In the filing, FTX underscored that the settlement saves the debtors’ estates a significant amount of money. The settlement helps to avoid…
Filed under: News - @ October 28, 2024 6:18 am