FTX Has Filed A Billion Dollar Lawsuit Against ByBit

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The bankruptcy estate of FTX, which is headed by CEO John J. Ray III, has already filed a lawsuit against the investment arm of Bybit, Mirana, and quite a few other executives. The aim has always been to recover the funds and the digital assets that the company withdrew from the crypto exchange before its collapse, with the current valuation at $1 billion.

The suit has claimed that Bybit utilized the VIP access, and had ties with the FTX staff in order to withdraw significant cash – as well as digital assets- from Mirana, Time Research, and various other executives just before the collapse of the exchange. During the withdrawal difficulties that the company saw in November 2022, the employees tracked the withdrawal requests of the VIP customers in a spreadsheet that had been labeled as VIP Request- Prioritize. 

FTX Has Filed A Lawsuit Against ByBit

This lawsuit alleged that the settlement team of FTX had gone to quite a few lengths in order to prioritize the significant withdrawals of Mirana, which would result in over $327 million being transferred to Mirana. The total value of the assets that were withdrawn by Bybit and the executives from the company has already reached a sum of $1 billion. The lawsuit further claimed that in October of 2021, an executive from Bybit had privately revealed to FTX that the company had been controlling BitDAO- which is now known as Mantle- despite presenting BitDAO as a decentralized organization that is run by community members. 

As FTX rejected this illogical proposal, BitDAO went on to swiftly rebrand it as Mantle- where it introduced the MNT tokens for the BIT holders in order to be converted at a 1:1 ratio. When the exchange started its conversion, BitDAO disabled it and held a community vote in order to decide on the restriction of FTX from converting to tokens.