⚠️FTX sued ByBit to recover $1 billion in funds released before FTX collapsed.
🪙FTX's bankruptcy estate has launched a lawsuit against Bybit, its investment subsidiary Mirana, and several executives, seeking to recover around $1 billion in funds and digital assets withdrawn from FTX before Bybit's bankruptcy.
The lawsuit, filed Friday, Nov. 10 in a Delaware court, seeks to protect Bybit's investment arm, Mirana Corp. FTX claims to offer exclusive "VIP" benefits that are not available to most customers. Mirana apparently took advantage of these benefits to transfer the majority of its assets from FTX before the platform collapses in November 2022.
The complaint alleges that Mirana pressured FTX employees to process withdrawal requests quickly, causing delays for regular FTX customers. Chapter 11 typically allows an insolvent company to recover its money several months before filing for bankruptcy. This power is designed to prevent certain creditors from gaining an unfair advantage by being able to withdraw funds from a bankrupt company while others cannot.
#FTX #ByBit #Exchange #Exchanges #Crypto
🪙FTX's bankruptcy estate has launched a lawsuit against Bybit, its investment subsidiary Mirana, and several executives, seeking to recover around $1 billion in funds and digital assets withdrawn from FTX before Bybit's bankruptcy.
The lawsuit, filed Friday, Nov. 10 in a Delaware court, seeks to protect Bybit's investment arm, Mirana Corp. FTX claims to offer exclusive "VIP" benefits that are not available to most customers. Mirana apparently took advantage of these benefits to transfer the majority of its assets from FTX before the platform collapses in November 2022.
The complaint alleges that Mirana pressured FTX employees to process withdrawal requests quickly, causing delays for regular FTX customers. Chapter 11 typically allows an insolvent company to recover its money several months before filing for bankruptcy. This power is designed to prevent certain creditors from gaining an unfair advantage by being able to withdraw funds from a bankrupt company while others cannot.
#FTX #ByBit #Exchange #Exchanges #Crypto