TX has marked a new phase in its bankruptcy process with it obtaining $228 million from crypto exchange Bybit. The agreement settles a case that was filed in November 2023 aimed at seeking recovery of $1 billion worth of assets. The terms of the deal are the following: First of all, FTX will acquire approximately $175 million in digital assets, secondli FTX will have the right to sell $53 million in BIT tokens to Mirana Corp.
Background of the Dispute
The ongoing dispute comes from FTX accusing Bybit and others affiliated companies to Bybit of cashing out approximately $325 million dollars by using their VIP privileges before FTX exchange went bust. The settlement provides for defendants who took the funds before the bankruptcy petition was filed to be allowed to continue maintaining creditor claims that are not less than 75% of their balances in the accounts at the time of filing the petition.
Strategic Benefits
Such a resolution grants FTX a quick access to huge resources while at the same time, eliminating expensive legal lawsuits. The settlement is part of a broader restructuring plan in FTX that seeks to provide at least $12.6 billion to customers. Furthermore, the final decision will be held next months on Novembre 2024
Impact on Bankruptcy Process
The settlement is consisstent with the FTX CEO John J. Ray III’s efforts to manage claims and progress the bankruptcy process. This agreement is significant in FTX’s process of seeking to achieve the highest amount of creditor recovery and organized efficient distribution of assets to all the affected customers.
FTX-Bybit Deal Speeds Up Bankruptcy Case
The Bybit settlement is an important step in FTX’s bankruptcy resolution allowing to identify the way of assets and creditors’ recovery without unnecessary legal proceedings.
