FTX, a bankrupt cryptocurrency exchange, has made a significant breakthrough in its efforts to refund customers affected by its crash in 2022. The company has reached a $228 million settlement with Bybit, which will allow FTX to retrieve some of the lost funds. As part of the agreement, FTX will drop its lawsuit against Bybit and repurchase $175 million worth of digital assets from Bybit’s platform. Additionally, Bybit’s investment arm, Mirana Corp., will acquire additional assets, including BIT tokens, from FTX for $53 million.
The legal dispute between FTX and Bybit originated from allegations that accounts linked to Bybit transferred $327 million from FTX before its collapse, resulting in a shortage of funds for FTX customers. FTX has been striving to recover these funds to address its creditors’ shortfall. With this settlement, FTX believes it has managed to recover most of the funds it aimed to retrieve.
This settlement marks a significant milestone for FTX in its broader mission to compensate its affected customers. Earlier this month, a court approved FTX’s repayment plan, which sets aside a minimum of $12.6 billion for distribution. However, the actual payments are subject to completion of logistical processes in multiple jurisdictions involved in the case.
Under FTX’s plan, refunds are expected to begin within 60 days of implementing the plan, although the final decision is still pending. The refund amounts will be based on cryptocurrency valuations from two years ago. FTX’s CEO, John Ray, and his team are actively working to navigate the complexities of the global payment process.
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