FTX has officially settled a legal dispute with cryptocurrency exchange Bybit, culminating in a substantial agreement worth $2.28 billion. This accord is a critical step in the ongoing process of reimbursing customers during FTX’s bankruptcy recovery efforts.
What Does the Agreement Entail?
Under the terms of the settlement, FTX will recover $1.75 billion in cryptocurrencies that were previously held on Bybit’s platform. Furthermore, Mirana Corp, the investment division of Bybit, is set to acquire assets totaling $53 million, including Bitcoin. The lawsuit originally arose from transactions that FTX deemed questionable, with claims that Bybit-related accounts withdrew $327 million just before FTX declared insolvency.
How Will Customers Be Compensated?
FTX has confirmed that all sought-after assets have been retrieved, effectively concluding its legal battle with Bybit. This milestone is pivotal as FTX seeks to repay users affected by its 2022 bankruptcy. Under CEO John Ray’s guidance, the company plans to reimburse over $12.6 billion to customers, with payments expected to start within 60 days after an effective date yet to be announced. The amount each customer receives will reflect cryptocurrency values from two years prior.
Key points to note about the agreement and repayment plan include:
- FTX recovers significant assets through the settlement.
- Customers will receive reimbursements based on historical cryptocurrency prices.
- The compensation plan aims to refund over $12.6 billion to affected users.
This agreement propels FTX forward in its quest to address outstanding debts to customers, marking another crucial stride following its 2022 bankruptcy. The global coordination of refund processes continues as FTX navigates this complex recovery landscape.
