FTX Files Lawsuit Against Crypto Exchange Bybit
FTX, currently undergoing bankruptcy proceedings, has filed a lawsuit against crypto exchange Bybit seeking the return of $953 million in digital assets.
The platform’s collapse led to this action, with West Realm Shires Services and Alameda Research also joining as plaintiffs.
According to the complaint, Bybit’s investment arm, Mirana, had special privileges that most FTX clients did not have.
These privileges allegedly allowed them to withdraw funds from the collapsing exchange. The plaintiffs claim that Mirana pressured FTX employees to expedite the processing of withdrawal requests while users were experiencing significant delays.
The lawsuit alleges that Bybit’s structure withdrew around $327 million worth of cryptocurrencies from FTX on November 7-8, 2022, when withdrawals had already been suspended.
The lawsuit also names Bybit’s trading subsidiary, Time Research, and several managers who were involved in Mirana’s operations or benefited from them as defendants.
