FTX Launches Legal Offensive Against Bybit, Mirana Ventures, and Time Research in Pursuit of $953 Million

The cryptocurrency exchange FTX has taken legal action against Bybit and its affiliated companies, Mirana Ventures and Time Research, aiming to recoup a staggering $953 million. This sum, encompassing both fiat and digital currencies, had been withdrawn from the FTX platform recently, contributing to the overall decline of FTX.

The lawsuit specifies that FTX is seeking a maximum of $953 million, including $327 million withdrawn by Mirana Ventures between November 7 and November 8, 2022. Notably, FTX emphasizes that the asset values will be calculated as of November 1, 2022, with potential updates during the legal proceedings.

FTX’s bankruptcy advisers allege that Bybit and its affiliate, Mirana Ventures, were granted VIP privileges on the FTX platform. These privileges were allegedly exploited to withdraw a substantial amount of funds from FTX before its bankruptcy filing. Mirana is accused of exerting pressure on FTX employees to prioritize and expedite their withdrawal transactions over those of regular users.

During FTX’s bankruptcy proceedings, the exchange has pursued legal action against various individuals and entities to reclaim funds. Most recently, FTX filed a lawsuit against Joseph Bankman and Barbara Fried, the parents of FTX’s founder, Sam Bankman-Fried, seeking compensation for millions of dollars transferred through fraudulent conveyance and embezzlement.

According to court documents filed on Monday, FTX is requesting compensation from Sam Bankman-Fried’s parents for damages resulting from fraudulent conveyance, breach of fiduciary duty, and other wrongful actions.

“As the parents of Bankman-Fried, Bankman and Fried leveraged their access and influence within the FTX business to enrich themselves, directly and indirectly, by millions of dollars, knowing that this caused harm to the debts of these Chapter 11 cases and their creditors,” the documents state.

The lawsuit further alleges that FTX Trading paid $18,914,327.82, including taxes, fees, and expenses for Blue Water – subsequently acquired by Bankman and Fried. The documents reveal various fees related to Blue Water amounting to over $90,000.

Additionally, FTX’s legal filings disclose that Sam and his parents utilized their legal expertise to misappropriate the company’s assets with the intention of self-enrichment. The unfolding legal battle sheds light on the complex and contentious issues surrounding the cryptocurrency industry, emphasizing the need for regulatory scrutiny and accountability.

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