FTX files billion-dollar lawsuit against ByBit over asset withdrawals
1 min read
The FTX bankruptcy estate, headed by CEO John J. Ray III, has filed a lawsuit against ByBit, its investment arm Mirana, and various executives. The aim is to recover funds and digital assets that ByBit withdrew from FTX just before its collapse, with the current value close to $1 billion.
The suit
According to the lawsuit, FTX informed ByBit that the action violated the automatic stay in Chapter 11 bankruptcy. Despite this, the “community vote” passed, with votes seemingly linked to ByBit executives. Notably, the fifth-largest vote came from the wallet “dtoh.eth,” identified as Mirana Ventures, a Mirana subsidiary led by David Toh.
The legal action is pursuing “compensatory and punitive damages” from ByBit regarding the token scheme and the assets held on its platform.
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