FTX Files $1 Billion Lawsuit Against ByBit Over Asset Withdrawals

FTX, the bankrupt cryptocurrency exchange, has filed a billion-dollar lawsuit against ByBit, its investment arm Mirana, and various executives, seeking to recover funds and digital assets that ByBit allegedly withdrew just before FTX's collapse. The lawsuit claims that ByBit used its VIP access and connections with FTX staff to withdraw significant cash and digital assets. FTX employees allegedly prioritized Mirana's withdrawals, resulting in over $327 million in transfers. ByBit has imposed limitations on FTX's estate, preventing the withdrawal of assets exceeding $125 million, allegedly using them as leverage to seek recovery for a remaining balance. The lawsuit also alleges that ByBit misrepresented its control over BitDAO and attempted to reverse a transaction with FTX. The legal action is seeking compensatory and punitive damages.