Bybit to Pay $228 Million in FTX Bankruptcy Settlement

The FTX bankruptcy estate reached a $228 million settlement with Bybit, resolving a lawsuit aimed at recovering funds to repay former customers and creditors.

As part of the settlement, FTX will reclaim $175 million in digital assets held on Bybit and sell $53 million in BIT tokens to Mirana Corp, a Bybit affiliate.

FTX settled with Bybit for $228m for withdrawing funds ($327m) before bankruptcy (Nov-22)

– $175m of FTX funds on Bybit
– $53m Mirana purchase of FTX’s BIT tokens

Defendants get customer claim of 75% of petition date balance pic.twitter.com/HWv5VqLUVs

— Sunil (FTX Creditor Champion) (@sunil_trades) October 27, 2024

Although FTX’s legal team believes their claims were valid, they noted that continued litigation would be costly and complex.

This agreement is pending court approval, with a hearing set for November 20, 2024.

Originally, FTX had filed a $1 billion lawsuit against Bybit and Mirana in 2023, alleging that they withdrew $327 million in assets before FTX’s collapse, benefiting from special “VIP” access.

FTX Scoops $228M in Bybit Settlement

FTX just settled things with Bybit, locking down a $228M deal that pulls $175M in crypto assets back to the fold and nets another $53M in BIT token sales through Bybit’s Mirana corp.

This is a key play for its $12.6B user refund pot,… pic.twitter.com/k12pb5b3pG

— Mario Nawfal’s Roundtable (@RoundtableSpace) October 27, 2024

This lawsuit is part of broader bankruptcy proceedings for FTX.

Recently, Judge John Dorsey approved FTX’s reorganization plan, leading FTX investors to drop their case against its former legal representatives, Sullivan & Cromwell, who creditors claimed continued work with FTX despite signs of misconduct.

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