## FTX Sues Bybit Over $953M Withdrawn Before Bankruptcy Filing
FTX, a cryptocurrency exchange, has taken legal action against Bybit Fintech Ltd in an effort to recover $953 million, which was withdrawn before FTX filed for Chapter 11 bankruptcy. The lawsuit against Bybit and its affiliates was filed in a Delaware court by FTX’s bankruptcy advisors. It alleges that Bybit utilized “special privileges” to expedite their withdrawal process, disadvantaging other FTX customers.
Mirana Corporation and two corporate affiliates of Bybit are also implicated in the suit, with Mirana Corp allegedly withdrawing over $327 million after FTX had suspended withdrawals on the exchange. FTX aims to reclaim these funds, as businesses under Chapter 11 bankruptcy typically have the right to recover funds dispensed in the period leading up to the filing to prevent unfair advantages for certain creditors.
Aside from the legal battle with Bybit, FTX has been actively seeking to recover funds from various sources, including pursuing former brand ambassadors and employees who allegedly siphoned more than $157 million from the exchange. Furthermore, FTX has been attempting to recover donations made by the firm and its former CEO, Sam Bankman-Fried. Notably, Stanford University announced plans to return approximately $5.5 million in gifts received from “FTX-related entities” from November 2021 to May 2022.
Despite the bankruptcy, there is interest from potential investors in reviving the defunct exchange, including figures such as former New York Stock Exchange (NYSE) president Tom Farley, fintech company Figure Technologies, and crypto investment entity Proof Group.
### What is Chapter 11 bankruptcy?
Chapter 11 bankruptcy is a form of bankruptcy that involves a reorganization of a debtor’s business affairs and assets. It is generally filed by businesses and allows them to continue operating while they restructure and pay off their debts.
### Is FTX actively seeking to recover funds from various sources?
Yes, FTX has been pursuing legal action and is actively trying to recover funds from multiple sources, including former brand ambassadors, employees, and beneficiaries of donations made by the firm and its former CEO.
### Who are the potential investors interested in reviving FTX?
Potential investors interested in reviving FTX include former New York Stock Exchange (NYSE) president Tom Farley, fintech company Figure Technologies, and crypto investment entity Proof Group.