FX.co ★ Notorious crypto exchange FTX nails down agreement with Bybit

Crypto investors welcome good news! The infamous crypto exchange FTX has approached the bankruptcy court seeking approval for a settlement agreement reached with Bybit and related defendants. The court has shown a willingness to comply. A resolution to this contentious issue will be delivered soon.

A hearing on the approval of the financial settlement is scheduled for November 20. If the court approves the existing agreement, the FTX exchange platform will recover $175 million in digital assets held on Bybit. Subsequently, the bankrupt firm could sell BIT tokens to Bybit’s investment arm Mirana for $53 million.

Thanks to the settlement agreement, creditors will receive almost everything they need, while the company can reduce expenses associated with prolonged legal proceedings, representatives of the bankrupt crypto exchange claim.

Previously, in a 2023 lawsuit, FTX alleged that Mirana used “special privileges” to withdraw assets ahead of the platform’s collapse in November 2022.

The current deal is one of several signed by CEO John J. Ray III, who took over the management of FTX and its related entities in the fall of 2022, following the firm's bankruptcy declaration. In October 2024, FTX received court approval for $12.6 billion in payouts to clients affected by the exchange’s shutdown.

Earlier, FTX’s administration submitted a separate document to the court – a motion requesting approval for a settlement with Caroline Ellison, former director of Alameda Research, which stipulates the return of all her assets to the bankruptcy estate.