Cryptocurrency exchange FTX is suing Bybit Fintech and two other companies to recover approximately $953 million in cash and digital assets. This case highlights governance issues in the crypto industry.

The lawsuit, filed in Delaware court, accuses Bybit's investment arm, Mirana Corp. It is based on the claim that it has "VIP" status through. FTX argues that this privilege allowed Mirana to withdraw large amounts of funds when the company was on the verge of collapse.

With the lawsuit, FTX aims to recover more than $327 million that Mirana moved during the critical period just before FTX halted all withdrawals. This is part of FTX's strategy to recover lost funds.

FTX plans to sue other parties besides Bybit. These parties include venture capitalists and celebrities.

Bybit is preparing its defense. FTX claims that Bybit restricts asset withdrawals over $125 million and uses these assets as leverage.

This case is not just a financial struggle for the cryptocurrency industry, but also a moment of reckoning. It shows the need for stronger governance and transparency in crypto exchanges.

Investors and market observers are following this litigation closely. The outcome of the case will impact investor confidence in crypto exchanges. While a positive outcome in favor of FTX could help restore some confidence in the market, it could deepen concerns about the security and reliability of digital asset platforms in the event of a loss.