FTX Bankruptcy Team Sues Bybit Fintech for $1 Billion

3:16 pm
November 13, 2023

The FTX bankruptcy team is suing Bybit Fintech and its affiliated companies for allegedly withdrawing assets worth about $1 billion from FTX before its Chapter 11 bankruptcy filing. The lawsuit is set to be heard in a Delaware court. The lawsuit alleges that Mirana Corp., an affiliate of Bybit, exploited special privileges to withdraw a significant amount of assets from FTX and pressured FTX employees to fulfill its withdrawal requests, while other customers faced delays accessing their funds as the exchange approached collapse in November 2022.

Charges against Mirana Corp.

The lawsuit asserts that Mirana Corp. and its affiliated companies benefited from special privileges not available to regular FTX customers and purportedly withdrew over $327 million from FTX during a critical period when FTX had paused withdrawals. Bybit Fintech Ltd., Mirana, and affiliated crypto trading firm Time Research Ltd. are listed as defendants in the bankruptcy lawsuit, along with a senior Mirana executive and Singaporean residents allegedly involved in the withdrawals.

FTX, under new management, is escalating efforts to recover funds disbursed before its Chapter 11 filing, including initiating legal actions against various entities and exploring the possibility of reclaiming funds donated to politicians, charitable organizations, and payments made to celebrities for endorsing the platform.

This lawsuit is a part of FTX’s ongoing legal battles as it navigates the complexities of Chapter 11 bankruptcy and endeavors to recover lost assets.

### Summary
FTX’s bankruptcy team has filed a lawsuit against Bybit Fintech and its affiliated companies, including Mirana Corp., seeking to recover assets worth approximately $1 billion, which were allegedly withdrawn from FTX just before its Chapter 11 bankruptcy filing.

### FAQ
1. **What is the lawsuit against Bybit Fintech about?**
The lawsuit alleges that Bybit Fintech and its affiliated companies, including Mirana Corp., withdrew approximately $1 billion in cash and digital assets from FTX just before its Chapter 11 bankruptcy filing.

2. **What are the allegations against Mirana Corp.?**
The lawsuit accuses Mirana Corp. of receiving special “VIP” benefits not available to regular FTX customers and of exploiting these privileges to withdraw a substantial portion of assets from FTX.

3. **Who are the defendants in the bankruptcy lawsuit?**
Bybit Fintech Ltd., Mirana, and affiliated crypto trading firm Time Research Ltd. are listed as defendants in the bankruptcy lawsuit, along with a senior Mirana executive and Singaporean residents allegedly involved in the FTX withdrawals.


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