FTX Secures $228M Settlement with Bybit in Bankruptcy Case

• The bankrupt FTX settles the lawsuit against Bybit for $228 million.
• The settlement allows FTX to recover $175 million in funds from Bybit.
• The lawsuit initially sought $953 million from Bybit and two corporate affiliates.

The bankrupt crypto exchange FTX announced a $228 million settlement with Bybit on October 24th, ending a prolonged lawsuit that aimed to recover funds. A legal filing shows the settlement allows FTX to withdraw $175 million in digital assets from Bybit and sell approximately $53 million in BIT tokens to Bybit’s investment division, Mirana Corp.

Back in November 2023, FTX filed a lawsuit against Bybit and two other corporate affiliates, claiming they unfairly profited from FTX. The lawsuit aimed to recover $953 million in funds and assets from FTX, Mirana Corp, and Time Research Ltd. The amount reflects the value of the withdrawn assets on November 1st.

Read also: FTX’s FTT Token Defies Logic, Trading at $2 Despite Bankruptcy

The settlement amount is significantly less than the $953 million FTX originally requested. Defendants who withdrew funds before the bankruptcy will receive creditor claims worth 75% of their account balances…

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