Filing: FTX sues crypto exchange Bybit and two affiliates to recover ~$953M that they allegedly withdrew using “VIP” status just before FTX filed Chapter 11
- FTX claims Bybit affiliate used “VIP” status to withdraw funds — Bybit's Mirana withdrew $327 million just before FTX pause
BloombergJonathan Randles
Context & Ripple Effects
This case belongs to FTX’s broader effort to rebuild the estate through claims against parties alleged to have received assets before the bankruptcy, alongside its separate recovery action against former executives.
The related coverage ultimately records a later agreement ending the Bybit litigation, underscoring that recovery suits can become a route to negotiated access to assets rather than a simple courtroom claim.
First-order effects
FTX’s estate seeks to bring roughly $953 million in cash and digital assets back into the bankruptcy pool; Bybit and the named affiliates must respond to allegations that VIP access enabled preferential withdrawals.
The filing puts Mirana’s reported $327 million withdrawal and the exchange’s treatment of VIP accounts at the center of a dispute over which transfers should remain outside the estate.
Second-order effects
Other counterparties that moved assets near FTX’s withdrawal halt face stronger incentives to preserve transaction records and assess settlement risk as the estate pursues recoveries.
The case makes account-tier privileges and withdrawal controls a practical source of counterparty risk for exchanges when a distressed platform’s customers and creditors compete for remaining assets.
Third-order effects
If recovery actions repeatedly target pre-collapse transfers, crypto insolvencies may rely more heavily on tracing platform permissions and account treatment, not only on claims against insiders.
The eventual settlement path suggests bankruptcy estates and exchange counterparties may increasingly favor asset-access agreements over prolonged litigation, though outcomes will remain case-specific.
The trend: Crypto bankruptcy recoveries are expanding from insider conduct to the exchange mechanics and preferential-access arrangements that shaped who exited before a platform failed.
🚨 JUST IN: FTX Sues Crypto Firm Bybit to Recover Assets Worth $953 Million - FTX claims Bybit affiliate used “VIP” status to withdraw funds - Bybit's Mirana withdrew $327 million just before FTX pause - The lawsuit is part of FTX's efforts under Chapter 11 to recover funds... [im…
I mean the biggest revelation here really is that ByBit has a very large trading desk. $900m is a lot to have on a smaller exchange (FTX was far behind binance). You have to wonder what the AUM is, probably billion dollar.
*between the lines* bybit's management knew a lawsuit from the FTX estate was likely, yet there is no comment from their end neither to the press/bloomberg, nor directly to their users or via socials IMO not a good look what's the plan, pretending it doesn't exist?
also noteworthy in this context: just after the FTX collapse in November, Bybit announced a “$100m institutional support fund”, offering market makers up to $10m credit lines at 0% interest rates for market making on their platform 🤔 [image]
This is standard practice with all crypto exchanges. Nobody knew ftx was bankrupt at that time. VIPs get VIP treatment because they make markets and bring liquidity to the exchange. If FTX employees knew what was going to happen, they probably wouldn't have done this.
To sum up, Bybit and affiliates withdrew approx 900M in the last days of FTX. FTX offers preference settlements at 15%, so only this amount is approximately same as we can potentially expect from relatively unknown stalking horse bidders. Moreover, i think Bybit is not alone
New details of FTX freefall in the Nov-22. Instead of prioritizing retail withdrawals and work with VIPs face to face to calm down and overcome the crisis, FTX chose VIPs. This eventually lead to the fail. Imagine 5-10 such clients as Mirana withdrawals were paused (or limited)- …
@OptimismCapital Standard practice - help to withdraw billions of one customer t the expense of thousands? that's silly practice. Always better to agree with 1-5 than with thousands of creditors. And we see the consequence - guilty verdict. Which likely be avoided if curly agreed…
@0xkaida @0xfoobar throughout 2022, this “VC” had $300-500m worth of deposits on FTX. why? Mirana doesn't do MM, but the *totally separated* entity, Time Research does! [image]
Only in crypto casually two ‘very noble and honest’ companies are having a ‘fair trial’ over a billion $ misallocated under suspicious circumstances involving another new category type of ‘VIP account’ robbing retail traders for money. [image]
If the list is as long as what's rumoured there will be some big names to follow. It's believed select individuals, exchanges were able to withdraw while the remainder were left to deal with the bankruptcy proceedings. #FTX #bybit [image]
FTX's bankruptcy advisers sued crypto exchange Bybit and two affiliates to recover cash and digital assets valued at roughly $953 million that was withdrawn from FTX before it filed Chapter 11 a year ago. Bybit pressured FTX employees to fulfill its withdraw requests....
🚨🚨🚨🚨🚨⚠️⚠️⚠️⚠️ What did I just tell you? When SHTF, insiders have private exits to drain every drop while you're stuck “ Bybit's investment arm had special “VIP” benefits, which most FTX customers didn't have, to get most of its assets off platform before it collapsed” [image]