FTX Withdraws Lawsuit Against Bybit in $228 Million Settlement

The bankrupt cryptocurrency exchange FTX has withdrawn its lawsuit against Bybit, its executives, and its investment arm Mirana as part of a settlement that will secure approximately $228 million for future creditor compensation, reports The Block.

Negotiations spanned several months. The settlement entails FTX reclaiming $175 million in cryptocurrencies held on Bybit and selling over 105 million BIT tokens to Mirana, valued at approximately $52.7 million.

Furthermore, defendants who withdrew their funds from FTX prior to its bankruptcy will still be able to claim 75% of the aggregate balance on their accounts as of the filing date.

Back in November 2023, FTX filed a lawsuit against the crypto exchange Bybit, demanding the return of digital assets worth approximately $953 million. The complaint alleged that Bybit’s investment arm, Mirana, had VIP privileges, which it used to withdraw funds from the collapsing exchange.

Earlier, a US bankruptcy court approved FTX’s reorganization plan to settle its debts with creditors.

The initiative was supported by 94.48% of FTX clients with claims on assets valued at $6.83 billion. About 98% of creditors will receive at least 118% of their claims in fiat, based on the exchange rate at the time of the bankruptcy filing.