FTX and Bybit Reach 228 Million Settlement Agreement Pending Court Approval on November 20
The bankruptcy reorganization team of FTX recently reached a settlement agreement with the cryptocurrency exchange Bybit, with a settlement amount of up to $228 million. This settlement stems from a claim lawsuit filed by FTX against Bybit and its affiliated investment department in 2023. Since 2022, the impact of FTX’s collapse has continued to expand, and the settlement amount will be used to repay affected users and creditors after FTX’s closure. The federal court is also expected to hold a hearing on 11/20 this year to approve the settlement agreement.
Bybit withdrew $327 million using “VIP” in advance
In 2023, the bankruptcy reorganization team of FTX filed a lawsuit against the Bybit exchange and its investment department Mirana, accusing them of withdrawing approximately $327 million in assets with their “VIP” status at FTX before the collapse of FTX in November 2022. According to the U.S. Bankruptcy Code, FTX has the right to recover funds in the months before the bankruptcy application to ensure fair treatment of all creditors.
Reaching a $228 million settlement,
Approved by federal court on November 20
The documents state that the settlement agreement allows FTX to withdraw $175 million worth of digital assets from Bybit and then sell approximately $53 million worth of BIT tokens to Mirana Corp (Bybit’s investment department). FTX’s lawyer stated that the bankruptcy team of FTX had a strong case in this lawsuit, but continuing to pursue it would consume a lot of time and cost, so they chose to settle. The settlement agreement still needs to be approved by the federal court, with a hearing scheduled for 2:00 PM on November 20 Eastern Time to approve the agreement. If approved, the settlement amount will be used to repay former users and creditors of FTX.
