FTX's $953M Asset Recovery Battle: Legal Action Against Bybit Amid Bankruptcy （1）

FTX's Legal Actions FTX's bankruptcy managers have taken legal action against Bybit crypto exchange and two other entities in a bid to recover $953 million in assets withdrawn before the collapse of FTX. This move follows recent efforts by the bankruptcy managers to reclaim the exchange’s funds from various parties. On 10 November, advisers overseeing the bankruptcy proceedings initiated legal action by filing a lawsuit against Bybit and its investment entity, Mirana Corp. The lawsuit alleges that Bybit, along with Mirana Corp., was allegedly strong-armed into processing $953 million in withdrawals before FTX's collapse. Mirana Corp. is accused of having special privileges enabling asset withdrawals from FTX and pressuring FTX employees to facilitate these withdrawals. FTX Group Assets The filing contends that Bybit used its control over FTX Group assets as leverage to pressure FTX.com into prioritising Mirana Corp.'s withdrawals. Bybit allegedly seized FTX Group assets, refusing to release them unless Mirana Corp. completed the withdrawal of its entire FTX.com account balance. The filing reads: “Defendant Bybit also used its control over FTX Group assets as an additional source of leverage to try to force FTX.com to push Mirana to the front of the line. After the FTX.com exchange halted customer withdrawals, Bybit seized FTX Group assets held on Bybit’s exchange, refusing to release them unless and until Mirana was able to finish withdrawing the entire balance of its FTX.com account.”