FTX, the bankrupt cryptocurrency exchange, has achieved a major breakthrough in its efforts to refund its customers. The company has reached a $228 million settlement with Bybit, marking a significant step forward in its recovery process.
Under the terms of the settlement, FTX will drop its lawsuit against Bybit and will be able to retrieve a substantial portion of the disputed funds. As part of the agreement, FTX will repurchase $175 million worth of digital assets from Bybit’s platform. Additionally, Bybit’s investment arm, Mirana Corp., will purchase additional assets from FTX, including BIT tokens, for $53 million.
The legal dispute between FTX and Bybit began last year when it was alleged that accounts linked to Bybit transferred $327 million from FTX just before its collapse. This sudden outflow of funds left many FTX customers unable to access their assets. FTX has been working tirelessly to recover these funds in order to address the financial shortfall faced by its creditors.
With this settlement, FTX has stated that it has successfully recovered the majority of the funds it aimed to retrieve. This marks a significant milestone in FTX’s broader efforts to reimburse its customers affected by its collapse.
Earlier this month, a court approved FTX’s repayment plan, which has set aside a minimum of $12.6 billion for distribution to customers. However, the actual payments are dependent on the completion of logistical processes in multiple jurisdictions involved in the case.
According to FTX’s plan, the payments are expected to commence within 60 days of the plan’s implementation, although the final decision is still pending. The refund amounts will be based on the valuation of cryptocurrencies from two years ago. FTX’s CEO, John Ray, and his team are actively working to resolve the complexities of the global payment process.
It is important to note that this article does not constitute investment advice.
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