📣 FTX Strikes $228M Deal with Bybit: What It Means for Users
posted 28 Oct 2024
The bankrupt crypto exchange FTX reached a $228 million settlement with Bybit, aimed at reclaiming assets to bolster funds for client and creditor repayments. FTX's restructuring team actively sought to recover assets to strengthen its payout capacity.
The new agreement will enable FTX to sell BIT tokens (currently MNT) worth approximately $53 million to Bybit’s investment arm and reclaim more than $175 million in other assets. These terms are set to take effect pending court approval, scheduled for November 20, 2024.
This amount may not significantly impact FTX users’ repayments, but will certainly help expedite the bankruptcy processnoted GN Crypto analyst Anton Kryshtal.
FTX's legal team mentioned that they could have pursued a higher amount, but the potential legal costs would likely outweigh any additional benefits. Initially, FTX sought $1 billion, alleging that Bybit indirectly aided former CEO Sam Bankman-Fried.
Resolving this dispute is a major step in FTX’s ongoing bankruptcy, which already includes an approved recovery plan for affected clients. Recently, FTX also settled with the U.S. Commodity Futures Trading Commission (CFTC).
Additionally, a group of creditors withdrew a lawsuit against the law firm Sullivan & Cromwell, accusing it of aiding Bankman-Fried’s alleged fraud in its consulting role with FTX and profiting from an intentionally prolonged bankruptcy process.
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