FTX, the bankrupt cryptocurrency exchange, has reached a settlement with Bybit, its executives, and investment arm Mirana. The deal, valued at $228 million, is expected to help FTX repay its creditors.
The settlement, which still requires court approval, involves FTX recovering $175 million in digital assets from Bybit and selling $52.7 million in BIT tokens to Mirana. FTX argued that the settlement is in the best interest of all parties, providing a more certain outcome than continuing with litigation.
The FTX bankruptcy case, which began in late 2022, has seen the exchange file multiple lawsuits to recover assets. This particular lawsuit against Bybit sought $1 billion in damages, alleging that Bybit misused its VIP access to withdraw funds and assets before the exchange halted withdrawals for other users.
The settlement comes as FTX’s bankruptcy plan was approved on October 7, confirming that creditors will receive 98% of their claims in cash. The exchange estimates a total recovery of $14.7 billion to $16.5 billion, including funds recovered from various entities and regulators.
The FTX collapse has led to significant regulatory actions against the exchange and its sister company, Alameda, with total settlement fees reaching $12.7 billion, the highest ever imposed on crypto firms.