The bankrupt crypto-exchange FTX reached a settlement of several hundred millions of dollars with Bybit, a digital asset exchange.
Last week, FTX’s legal team filed a motion approving a Settlement Agreement with Bybit. This stemmed from FTX’s claim that Bybit refused to let the bankrupt company withdraw assets valued at around $175 million.
FTX claims that Bybit held assets in six different accounts. Bybit is typically the second largest crypto exchange based on trading volume.
In the settlement agreement, FTX will be able to withdraw $175,000,000 worth of assets from these accounts. Mirana Corp.’s investment arm will buy more than $52.7,000,000 worth of BIT tokens. FTX claims that Mirana devalued certain BITs owned by the exchange.
The settlement allows FTX to recover assets worth approximately $227,7 millions.
FTX collapsed in 2022 and declared bankruptcy amid allegations that the chief executive Sam Bankman Fried mismanaged the funds of the exchange by lending billions of dollar’s worth of deposits from customers to Alameda Research.
After the collapse of this exchange, which cost several billion dollars, crypto-prices plummeted. US authorities then arrested Bankman Fried.
Earlier in the month, a US court of bankruptcy approved FTX’s plan to pay between $14.7 and $16.5 billion to former crypto-exchange customers.
According to the plan, 98% of the creditors of the exchange will receive 119% of their value on the date FTX declared bankruptcy in November of 2022.
Increased payouts were made possible by higher crypto-prices and FTX’s 8% share in AI (artificial Intelligence) research and safety company Anthropic.
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Sources of Images include Pixabay Creative Commons & Midjourney
As new information becomes available, this post Bankrupt FTX Inks over $227,000,000 with Bybit to Recover Funds from Stakeholders could be updated.
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