FTXTradingLtd.hasreacheda$228millionsettlementwithBybitFintechLtd.toendthelegalbattlebetweenbothentities.ThismovewillallowFTXtorecoverassetsfromBybit’sexchange.Aspartofthedeal,thedefunctexchangewillgetback$175millionindigitalassetsplussell$53millioninBITtokenstoBybit’sinvestmentarm,MiranaCorp.
ThesettlementcomesasFTXrecentlyreceivedcourtapprovalforitsbankruptcyplanwhichallowedittorepaycustomersusingupto$16.5billioninassetsrecoveredafteritshistoriccollapse.ThebankruptcyjudgeJohnDorseystatedthatFTX’ssuccessmadeitamodelcaseforaverycomplexbankruptcyproceeding.
FTXlands$327MwinoverBybit
Accordingtoreports,FTXmovedaheadtoasktheUSBankruptcyCourtfortheDistrictofDelawaretoacceptasettlementitreachedwithBybiandothers.However,thedealwillallowthecollapsedcryptoexchangetorecoverausefulamountoffunds.
FTX’ssuitclaimedthatMiranawithdrew$327millionjustbeforetheexchange’scollapsewhileotheruserswerelockedout.ThesettlementsuggeststhatMiranacanclaimupto75%ofitsaccountbalancespre-bankruptcy.Itcangenerategoodnetsavingsforthedebtors’estates.
ItaddedthatSBF’sexchangehadstatedthedealwouldallowitto“recoversubstantiallyeverythingtheysought,”securingfundsforstakeholdersandskippingthecostsanduncertaintiesofinternationallitigation.
ItsCEOJohnJ.RayIIIispushingforwardwiththewind-downplan.Ithascourtapprovaltodistributeatleast$12.6billiontocustomerswhohavebeenwaitingfortheirtrappedassets.
FTXmovestopayout$16.5B
FTXhasreceivedcourtapprovalforitsbankruptcyplan,allowingittorepaycustomers.Theplatformisnowsettorepay98%ofitsuserswithaccountsunder$50,000within60daysoncetheplanisactive.
Theplan,builtonsettlementswithcustomers,creditors,USagencies,andforeignliquidators,prioritizesrepayingcustomersbeforeothercompetingclaims.
Meanwhile,theexchangeisstillnegotiatingwiththeDOJover$1billionseizedduringtheBankman-Friedprosecution.Thiscouldyieldupto$230millionforFTXshareholders.
Withanestimated$14.7billionto$16.5billionavailableforrepayment,theexchangeexpectstocoveratleast118%ofcustomeraccountvaluesasofitsNovember2022bankruptcyfiling.FTX,onceatopcryptoexchange,collapsedwhenitwasrevealedthatSamBankman-FriedusedcustomerfundstocoverAlamedaResearch’sriskybets.
cryptopolitan.com