FTX, the cryptocurrency exchange, has taken strategic legal action by filing a lawsuit against Bybit, a crypto trading firm, and two related corporate entities. The lawsuit alleges that these platforms gained advantages from FTX. It aims to retrieve around $953 million in funds and assets the accused parties allegedly withdrew.
FTX claims that Mirana Corp, Bybit’s investment arm, allegedly exploited its exclusive “VIP” benefits, depriving FTX members of comparable privileges. Mirana purportedly withdrew most of FTX’s assets shortly before the platform declared bankruptcy in November 2022.
While regular customers and community members faced transaction processing delays, Mirana reportedly exerted pressure on FTX’s employees to prioritize their withdrawal requests. Mirana allegedly transferred a large sum of money, more than $327 million out of the total $953 million, during the time when FTX stopped allowing withdrawals. This transfer took place on November 7 and November 8, 2022.
The lawsuit is directed towards Bybit, Mirana Corp, and Time Research Ltd, which is associated with Mirana. In particular, a senior executive at Mirana is accused of either benefiting from or playing a significant role in the FTX withdrawals. FTX claims that the amount of money withdrawn is valued based on the asset prices on November 1.
FTX’s Legal Battle: Unveiling Alleged Wrongdoings
FTX’s legal action highlights the alleged wrongful acts of Bybit and its affiliates. The focus is on a critical time for the cryptocurrency exchange. The lawsuit aims to uncover the practices that it believes led to the withdrawal of significant funds, adding to the platform’s financial difficulties. It seeks both financial restitution and transparency in this matter.
Bybit and the other accused entities have not yet released official statements regarding these allegations. The legal battle that is unfolding is expected to draw attention from the cryptocurrency community. This case highlights the difficulties and possible risks that digital asset exchanges face in the highly volatile and competitive market.
During the legal issues, FTX has been carefully preparing for its relaunch. Many potential buyers are showing interest. This includes NYSE President Tom Farley’s Bullish, fintech firm Figure Technologies, and venture capital investor Proof Group.
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Prominent figures and entities showing interest in FTX’s potential revival suggest optimism in the industry about the exchange’s future. Despite ongoing legal challenges, it attracts players eager to contribute, which may lead to a positive turning point for the embattled business.