On 24 October, FTX entered into an agreement with exchange Bybit, settling a lawsuit originally initiated in 2023. FTX filed the lawsuit to obtain funds to compensate its former clients and creditors.
According to legal documents, the settlement agreement will allow #FTX to sell approximately £53 million worth of BIT tokens to Mirana Corp, the investment arm of the Bybit exchange.
Bybit will also allow FTX to withdraw £175 million in #digital assets. FTX's attorneys said their claims are valid, but continued litigation would be a cumbersome process.
The plaintiffs' claims of rescission, violation of the automatic stay, fraud and preferential transfer of assets are without merit, involve some risk, and in any event, further litigation would be time-consuming and costly. The court must approve the settlement, and the parties have scheduled an approval hearing for 20 November 2024 at 2:00 p.m. (GMT) FTX originally filed suit against Bybit and Mirana in November 2023, alleging "VIP" access by these companies and their close relationships with FTX U.S. executives in digital assets and cash shortly before FTX's ultimate collapse, allegedly for the purpose of preemptively withdrawing approximately £327 million.
The FTX originally filed claims totaling £1 billion. Attorneys for the bankrupt FTX claimed that in the early stages of the collapse, the team granted Mirana and others preferential withdrawal rights.
After Judge John Dorsey approved FTX's restructuring plan on 7 October 2024, investors decided to voluntarily drop their lawsuit against the law firm Sullivan and Cromwell, which had represented them in many transactions while the business was still in operation.
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