- According to the lawsuit, Mirana put undue pressure on FTX staff to process withdrawal.
- The lawsuit seeks to recover all funds valued at an astounding $953M.
Crypto exchange FTX’s bankruptcy advisors have sued Bybit Fintech Ltd. to reclaim cash and digital assets valued at an astounding $953 million. According to FTX’s advisors, ByBit took all of the funds just before the company filed for Chapter 11 bankruptcy in November.
The action was filed on Friday, November 10 in a Delaware court and claims that Bybit’s investment arm, Mirana Corp., received “VIP” treatment that was unavailable to other FTX clients. Mirana is accused of using these accesses to remove the vast bulk of its holdings from FTX prior to the collapse of the exchange in November 2022.
Recovering Assets
According to the lawsuit, Mirana put undue pressure on FTX staff to process its withdrawal requests quickly, while the company’s regular clients were kept waiting. Over $327 million was reportedly removed by Mirana at the time when FTX halted withdrawals on November 8, 2022, and this lawsuit seeks to recover all of these funds and more.
Bybit Fintech Ltd., Mirana, and Time Research Ltd., a linked cryptocurrency trading business, are named in the bankruptcy lawsuit. Additionally, a senior Mirana official from the relevant time period and Singaporean citizens who, according to the complaint, benefited from or had a part in the FTX withdrawals under examination in the bankruptcy case are named as defendants in the legal action.
In the months before filing for bankruptcy, Chapter 11 usually gives failing businesses a chance to recoup lost funds. With this power, insolvent businesses can’t provide preferential treatment to those creditors who were able to get their money out before others.
Amid all these developments, the price of FTT is witnessing a significant rally. The price is up 53.97% in the last 24 hours and 241.53% in the last 7 days as per data from CoinMarketCap.
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