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FTX Initiates a Billion-Dollar Suit Targeting ByBit for Asset Extraction

FTX bankruptcy estate, led by John J. Ray III, files a $1 billion lawsuit against ByBit and its executives to recover assets.

Jay Hicks



FTX files against bybit

The FTX bankruptcy estate, operating under the lead of John J. Ray III, has submitted a lawsuit confronting ByBit. The respective lawsuit also targets ByBit’s investment branch Mirana along with diverse executives and the purpose of the lawsuit filing is to redeem digital assets and funds. ByBit allegedly had extracted the respective funds and assets from FTX ahead of its collapse. The current value of the respective assets and funds is nearly $1 billion.

FTX lawsuit

FTX Starts a Billion-Dollar Suit Confronting the Crypto Exchange ByBit

The lawsuit claims that the accused crypto exchange utilized “VIP” access as well as association with the staff of FTX. As per the filing, the platform extracted a huge amount of digital assets and cash from Mirana. In addition to this, it also asserts that the platform withdrew funds from Time Research (another company connected to ByBit) as well as executives before the crash of FTX.

Also Read: FTX Loses Bitcoin Worth $10 Million in BTC Theft: Details

Amid the withdrawal difficulties that FTX experienced during November last year, the company’s employees traced the withdrawal requests that the VIP clients had made. They recorded the respective requests in a spreadsheet document named “VIP Request – Prioritize (Settlement).”

The Lawsuit Accuses ByBit of Allegedly Extracting Funds from FTX Before Its Crash

According to the lawsuit, the settlement team of FTX made considerable efforts to prioritize the significant asset extractions of Mirana. This reportedly paved the way for the transactions of more than $327M to Mirana. The cumulative assets that ByBit and the company’s executives allegedly extracted from FTX have a total value of almost $1B.

Related: FTX Files a Lawsuit Against LayerZero to Recover Funds Worth $21M

In line with the suit, ByBit has restricted FTX estate from extracting assets above $125M. The crypto exchange is allegedly utilizing the respective assets to pursue the remaining $20M balance’s recovery. It could not withdraw the respective amount before the collapse of FTX. The legal action seeks compensation from ByBit concerning the token scheme as well as the assets that the exchange held.

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