In a recent development, FTX has agreed to drop its legal dispute against Bybit, along with its executives and investment arm Mirana, in a settlement that could help the bankrupt cryptocurrency exchange to retrieve approximately $228 million.
The company plans to use the recovered amount to repay its creditors in the near future. According to FTX’s court documents submitted last Thursday, both parties engaged in lengthy and genuine negotiations to resolve the claims.
Eventually, a comprehensive settlement was reached and documented in the Settlement Agreement. Under the terms of the settlement, FTX’s liquidation estate will be able to recover $175 million worth of cryptocurrencies held in Bybit’s accounts.
This will be accompanied by the sale of over 105 million BIT tokens, valued at $52.7 million, to Mirana (Bybit’s investment arm).
Moreover, those defendants who had transferred their funds out of FTX prior to its bankruptcy will still have the opportunity to reclaim 75% of the total balance in their accounts as of the date of petition.
