The FTX estate had originally sought $953 million from Bybit when it first sued the crypto exchange almost a year ago, trying to claw back what it characterized as "misappropriated funds" in the days before FTX collapsed. Originally seeking significant sums, FTX negotiated settlements that allowed them to recover over $200 million, highlighting how bankruptcy efforts can still yield substantial recoveries despite dire circumstances.
In its latest settlement, FTX is recovering $175 million in assets held in Bybit accounts and an agreement that Bybit would purchase the FTX debtors' BIT tokens for about $53 million. This transaction illustrates strategies used during the bankruptcy process to maximize asset returns even from volatile digital currencies.
The federal bankruptcy court approved a final plan for closing out the recovery, estimating repayments to former FTX customers and creditors at an average of 118% (and in some cases much more) of what they held when the company filed for bankruptcy. This upswing, however, means creditors do not benefit from the dramatic increases in crypto prices since the bankruptcy filing.
The cash payouts were meant to happen "within 60 days," FTX said, indicating that the liquidation and recovery processes are proceeding at a pace that should soon bring relief to those with claims against the now-defunct exchange.
Collection
[
|
...
]