The post Settlement Possibilities for Bitcoin After FTX Bankruptcy Estate Reaches Agreement with Bybit appeared on BitcoinEthereumNews.com.

The ongoing legal saga surrounding the FTX bankruptcy continues as the estate settles a significant lawsuit with Bybit, marking a pivotal moment in crypto recovery. In a recent filing on October 24, 2024, the FTX bankruptcy estate reached a $228 million settlement with Bybit, aimed at reclaiming funds to aid former customers. According to FTX attorneys, “Plaintiffs’ claims for turnover…are disputed, carry some degree of risk, and in any event would be time-consuming and expensive to further litigate,” indicating the complexities of the case. The FTX bankruptcy estate achieved a $228 million settlement with Bybit, allowing for the recovery of $175 million in digital assets, as legal proceedings unfold. FTX Bankruptcy Estate’s Settlement with Bybit: Key Details The settlement between the FTX bankruptcy estate and Bybit is a significant development in the ongoing efforts to address the fallout from the FTX collapse. According to the court filing, the agreement enables FTX to recover up to $175 million in digital assets currently held on Bybit, as well as the sale of approximately $53 million in BIT tokens to Mirana Corp, which is Bybit’s investment arm. This move aims to enhance the recovery process for FTX creditors and former customers, who have been awaiting resolution since the exchange’s collapse. Legal Background and Implications for FTX Stakeholders The legal proceedings initiated by the FTX estate against Bybit were rooted in allegations that Bybit and its affiliate, Mirana, had accessed FTX funds under the guise of “VIP” privileges shortly before FTX declared bankruptcy. The initial lawsuit, filed in November 2023, sought to recover approximately $327 million in cash and digital assets that were allegedly withdrawn preemptively. This particular aspect of the case highlights the intricacies of crypto exchanges’ operational standards and the importance of regulatory oversight. FTX’s Path to Recovery Amid Legal Challenges Following…

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Filed under: News - @ October 27, 2024 5:15 pm