FTX has secured a preliminary $228 million settlement with cryptocurrency exchange Bybit, aimed at reclaiming assets to benefit its creditors. Under the agreement, FTX’s liquidating estate will recover around $175 million in digital assets currently held on Bybit’s platform. Additionally, FTX plans to sell BIT tokens to Mirana Corp., Bybit’s investment arm, for about $53 million.
This settlement involves FTX, Bybit, and Mirana Corp., and represents a broader effort led by FTX’s CEO, John J. Ray III, to recoup funds after the exchange’s bankruptcy in 2022. Ray, known for his expertise in corporate restructuring, has been steering FTX through its recovery and asset retrieval processes.
FTX filed the request for settlement approval with the U.S. Bankruptcy Court in Delaware after months of negotiations. The legal pursuit began last year when FTX accused Mirana of leveraging privileged access to withdraw $327 million from FTX’s platform shortly before it collapsed in November 2022.
The settlement was filed in the U.S. Bankruptcy Court for the District of Delaware, with implications extending to international assets managed through Bybit’s platform.
The agreement enables FTX to recover assets and provide creditor relief without the delays and costs of prolonged litigation. By facilitating this settlement, FTX aims to return a substantial portion of funds to creditors impacted by its sudden collapse.
Through this settlement, FTX’s estate will avoid further legal expenses and potential enforcement challenges abroad. According to FTX, the deal enables recovery of nearly all funds initially pursued, helping alleviate the financial strain on its creditors and saving on the complexities associated with extended litigation.
The agreement aligns with FTX’s broader recovery plan, recently approved by the court, which outlines the distribution of approximately $12.6 billion in locked assets to affected customers. This move highlights a critical phase in FTX’s efforts to restore value to stakeholders and move beyond the legal and financial challenges stemming from its high-profile collapse.
