FTX has filed a lawsuit against Bybit, its investment branch Mirana Corp, and an affiliated crypto exchange, Time Research, claiming that the platforms withdrew a total of approximately $953 million in funds and assets using VIP benefits.
According to the complaint, Mirana withdrew over $327 million on November 7 and November 8, 2022, just before FTX declared bankruptcy. The lawsuit aims to recover the allegedly withdrawn funds and assets.
The lawsuit alleges that Bybit and its investment branch, Mirana Corp, took advantage of FTX’s exclusive “VIP” benefits, which regular FTX members did not have access to. FTX claims that during a time when ordinary customers and community members were experiencing delays in completing transactions, Mirana forced FTX employees to speed up the withdrawal process for their benefit. In total, over $327 million was moved off by Mirana, using the VIP benefits, right before FTX paused withdrawals.
The lawsuit has named Bybit, Mirana, and Time Research Ltd, an affiliated crypto exchange, as defendants. It also charges a senior Mirana executive with benefiting from or playing a crucial role in the withdrawals. FTX asserts that the funds withdrawn by the defendants were valued according to the price of the assets on November 1.
In related news, it was reported that FTX is planning to relaunch, and there are potential suitors looking to initiate the platform’s new journey. Among the suitors are the New York Stock Exchange (NYSE) President Tom Farley’s Bullish, fintech and digital assets firm Figure Technologies, and venture capital investor Proof Group. This development suggests that FTX is looking to move forward and recover from its bankruptcy.