FTX Files Billion-Dollar Lawsuit Against ByBit
The FTX bankruptcy estate, led by CEO John J. Ray III, has filed a lawsuit against ByBit, its investment arm Mirana, and executives to recover funds and digital assets that ByBit withdrew from FTX before its collapse.
The lawsuit claims that ByBit used VIP access and ties with FTX staff to withdraw significant cash and digital assets from Mirana, Time Research, and executives. The total value of assets withdrawn by ByBit and its executives from FTX has now reached almost $1 billion.
ByBit is using these assets as leverage to seek recovery for a remaining balance of $20 million that it could not withdraw from FTX before its collapse. The lawsuit alleges that the action violated the automatic stay in Chapter 11 bankruptcy, but the “community vote” passed, seemingly linked to ByBit executives.
The legal action is pursuing “compensatory and punitive damages” from ByBit regarding the token scheme and the assets held on its platform.
(With inputs from Shikha Singh)
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