APP
The FTX bankruptcy estate has initiated legal proceedings against Bybit, its investment arm Mirana, and several executives, with the objective of recovering approximately $1 billion in funds and digital assets that Bybit allegedly withdrew from FTX just prior to its collapse.
Filed in a Delaware court on Friday, November 10, the lawsuit alleges that Mirana Corp., Bybit's investment arm, enjoyed exclusive "VIP" benefits that were not accessible to the majority of FTX customers. Mirana is accused of utilizing these privileges to transfer the majority of its assets out of FTX before the platform's November 2022 collapse.
The complaint contends that Mirana exerted pressure on FTX employees to expedite its withdrawal requests, causing delays for regular FTX customers.
In general, Chapter 11 provides struggling companies with the opportunity to recover funds in the months leading up to a bankruptcy filing. This authority aims to prevent specific creditors from gaining an undue advantage simply because they managed to withdraw their funds from a failing business, while others were unable to do so.
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