- FTX secured a $228 million settlement with Bybit, recovering $175 million and selling BIT tokens to Mirana for $53 million.
- Former Alameda CEO Caroline Ellison agreed to hand over assets, including $30 million in bonuses, to FTX debtors.
Reaching a $228 million deal with Bybit, FTX has made a major milestone in its continuous bankruptcy processes. As FTX tries to recoup cash lost during its collapse, this agreement is absolutely vital.
Under the agreement, FTX will get $175 million straight from Bybit and the remaining $53 million from the sale of BIT tokens to Mirana, the investment arm of Bybit. This is a crucial first step toward giving creditors and consumers of FTX their returns of assets.
Breaking News: FTX has reached a monumental agreement to drop its litigation against Bybit in a deal valued at $228M! This paves the way for FTX to reclaim vital assets from Bybit's exchange. What does this mean for the future of crypto? #FTX #Bybit #CryptoNews… pic.twitter.com/OJUj1yAhx2
— PUPUWEB Blog (@cheinyeanlim) October 28, 2024
Settlement Provides Financial Relief Amid FTX Ongoing Bankruptcy and Legal Challenges
Apart from recovering significant money, the settlement enables FTX to keep working toward making its stakeholders whole. On its side, Bybit is essential in this process since it provides financial relief to a business negotiating a convoluted web of bankruptcy and legal battles.
These agreements have shown that settlements such as these can offer some sort of financial relief for troubled businesses and their investors, even in the demanding crypto market.
Furthermore, in line with FTX’s larger goal of asset liquidation for debt settlement is this payment. These steps will provide the bankrupt exchange better chances of fulfilling its debts and more liquidity.
Critics have noted, meanwhile, that past behavior—such as selling SOL tokens at drastically reduced rates to venture capitalists—has generated controversy, particularly with relation to the precedence of customers over creditors in these processes.
Concurrent with more general recovery initiatives, former Alameda Research CEO Caroline Ellison has committed most of her assets to FTX’s debtors, according to CNF.
Along with the recovery of more than $30 million in bonuses and equity transfers, this agreement covers Her settlement reflects the extent of FTX’s efforts to recover money from important insiders in order to handle creditor claims.
Previously, it was also claimed that 178k SOL tokens, worth $28 million, were redeemed and transferred outside of the Solana Proof-of-Stake network.
This followed claims that FTX is getting ready to pay back unhappy consumers, but not without running under criticism that by selling assets like SOL tokens at significant discounts to venture capital firms, its bankruptcy lawyers are giving clients precedence over other creditors.
