FTX Bankruptcy Team Sues Bybit Fintech for $1 Billion


FTX’s bankruptcy advisers have recently taken legal action against Bybit Fintech and its related companies, including their investment arm, Mirana Corp. The lawsuit, filed in a Delaware court, is looking to recover assets estimated to be worth around $953 million, which were allegedly removed from the FTX exchange prior to its Chapter 11 bankruptcy filing in November 2022.

The complaint alleges that Mirana Corp. had special privileges not available to regular FTX customers, allowing them to withdraw a significant sum of funds from the exchange. Mirana Corp. is accused of pressuring FTX employees to fulfil its withdrawal requests while other customers were facing delays accessing their funds.

The lawsuit names Bybit Fintech Ltd., Mirana, and Time Research Ltd. as defendants. Additionally, a senior Mirana executive and Singaporean residents allegedly associated with the FTX withdrawals have been named in the legal proceedings.

FTX is now under new management and is making efforts to reclaim the funds taken from the exchange prior to its bankruptcy filing. Various entities, including Kives and his venture capital firm K5, are targeted for the recovery of a large sum of money. FTX is also taking steps to retrieve funds donated to politicians, charitable organisations, and payments made to celebrities, like Shaquille O’Neal and Naomi Osaka, for endorsing the platform.

The current lawsuit is a part of FTX’s ongoing legal battles as it strives to navigate the complexities of Chapter 11 bankruptcy and recuperate its lost assets.

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