FTX has agreed to drop litigation against crypto exchange Bybit in a $228 million settlement that will let FTX recover a substantial portion of funds held on the platform.
The agreement will allow FTX to reclaim $175 million in digital assets from Bybit’s exchange and sell additional assets, including BIT tokens, to Bybit’s investment arm Mirana Corp. for $53 million.
The legal dispute, filed by FTX last year, alleged that Bybit-affiliated accounts moved $327 million off FTX just before its collapse, leaving other customers locked out of withdrawals.
“Through the Settlement Agreement, the Debtors will be recovering substantially everything that they seek to recover,” FTX stated.
This settlement brings FTX closer to repaying customers affected by its 2022 collapse.
FTX’s repayment plan, approved earlier this month, earmarks at least $12.6 billion for distribution.
Payments are set to begin within 60 days of the effective date, however, this date is still to be determined.
Though repayment amounts are based on crypto values from two years ago, FTX’s team, led by CEO John Ray, is actively working to finalise global disbursement logistics across hundreds of jurisdictions.
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
