bit"FTX vs. Bybit Legal War: Mission to Recover $1 Billion from Digital Asset 'Theft'"
The FTX bankruptcy estate moved decisively against Bybit, Mirana (Bybit's investment subsidiary), and select executives. The mission: recover approximately $1 billion in funds and digital assets that Bybit allegedly withdrew from FTX ahead of its bankruptcy in November 2022.
The lawsuit, filed in a Delaware court, highlights that Mirana Corp., Bybit's investment subsidiary, enjoys exclusive "VIP" privileges that are unaffordable to the majority of FTX customers. Mirana is accused of taking advantage of this privilege to move most of its assets away from FTX before the platform's downfall.
The lawsuit also asserts that Mirana put pressure on FTX employees to expedite withdrawals, resulting in delays for regular FTX customers.
In a broader context, Chapter 11 provides an opportunity for distressed companies to secure funds ahead of bankruptcy, preventing certain creditors from gaining an unfair advantage.
