The post ByBit Under Fire, FTX Files Lawsuit Seeking the Return of $1 Billion in Assets appeared first on Coinpedia Fintech News
FTX, the well-known cryptocurrency exchange, has taken legal action against ByBit Fintech Ltd and its affiliated companies. The bankruptcy advisers of FTX are pursuing the recovery of cash and digital assets valued at approximately $953 million. Allegations suggest that ByBit withdrew all funds just before FTX filed for Chapter 11 bankruptcy a year ago.
Lawsuit Unveils VIP Scandal
FTX, a cryptocurrency exchange, Filed a lawsuit against ByBit in a Delaware court on Friday; the lawsuit claims that Bybit’s investment arm, Mirana Corporation, enjoyed exclusive “VIP” benefits not accessible to most FTX customers. Mirana allegedly leveraged these privileges to swiftly remove a substantial portion of its assets from FTX before its collapse in November 2022.
The complaint highlights Mirana’s exertion of pressure on FTX employees to fulfill its withdrawal requests while regular customers faced prolonged delays.
Currently, representatives for Bybit have not responded to requests for comments on the lawsuit, and an FTX spokesperson has declined to provide a statement.
Chapter 11 in Action to Recover $1 Billion
Chapter 11 bankruptcy typically enables failed companies to recover funds in the months leading up to the bankruptcy filing. This provision aims to prevent certain creditors from gaining an unfair advantage solely because they managed to withdraw their funds before the company’s failure.
The lawsuit seeks to recover assets valued at approximately $953 million, including over $327 million that Mirana allegedly withdrew from FTX between the early morning of November 7 and November 8, 2022, when FTX suspended withdrawals.
This legal action represents the latest effort by FTX’s new management to reclaim funds disbursed before the Chapter 11 filing in November of the previous year.
FTT Price Skyrockets to $4.55
Simultaneously, the native token of FTX, FTT, is stealing the show. With a staggering 97% rally in just 24 hours, FTT has become the talk of the crypto town, marking the most substantial gain among the top 50 cryptocurrencies since the dawn of 2023. This surge, coupled with the momentum from the previous day, has catapulted the total gains to an astounding 240% in a mere two days.
Intriguingly, FTT breached a critical resistance level at $4.55 during intra-day trading, teasing the prospect of newfound support for the altcoin.
#News #CryptoRegulations [Source: Coinpedia]