FTX Bankruptcy Trustee Sues Bybit to Recover $953 Million in Assets

FTX's bankruptcy trustee has filed a lawsuit against the

cryptocurrency

exchange Bybit Fintech Ltd and its two subsidiaries this Friday in a Delaware court. The suit seeks to recover approximately $953 million in cash and crypto assets that were withdrawn from the platform before FTX's collapse.

The lawsuit alleges that Mirana Corp., an investment arm under Bybit, possessed special VIP privileges that most FTX customers did not have, utilizing these privileges to move a significant portion of its assets out of FTX's platform during the FTX collapse. While FTX clients were waiting in line for withdrawals, Mirana exerted pressure on FTX employees to meet its withdrawal requests.

Another subsidiary named in the suit is Time Research Ltd.