FTX, undergoing bankruptcy proceedings, has filed a lawsuit against cryptocurrency exchange Bybit, demanding the return of digital assets worth approximately $953 million that were withdrawn shortly before Sam Bankman-Fried’s platform collapsed. West Realm Shires Services and Alameda Research are also listed as plaintiffs. The complaint alleges that Bybit’s investment arm, Mirana, had VIP privileges that most FTX clients did not possess. The company supposedly took advantage of these privileges to withdraw funds as the exchange was on the verge of collapsing. The plaintiffs noted that Mirana exerted pressure on FTX employees to expedite withdrawal requests, while users had to wait for transfers for several hours. Approximately $327 million in cryptocurrencies were taken from FTX by Bybit on November 7-8, 2022, when fund withdrawals were already suspended. The lawsuit also names Bybit’s subsidiary trading company, Time Research, and several managers who either benefited from Mirana’s operations or orchestrated them as defendants. Chapter 11 of the US Bankruptcy Code allows for the return of assets withdrawn a few months before filing for insolvency during the restructuring process. This provision is intended to ensure that certain creditors do not gain an advantage over others by withdrawing their funds from a failing business. FTX stated that it has assessed the assets withdrawn by Bybit and its subsidiaries based on November 1 exchange rates and may modify the claims amount during the proceedings. In May, FTX filed a lawsuit against Genesis, demanding the return of $3.9 billion, which was later reduced to $2 billion. As a result, the companies agreed to pay $175 million in favor of Alameda Research. In July, FTX’s lawyers demanded the return of $71 million from charitable divisions associated with the exchange. In September, the platform filed a lawsuit against LayerZero, seeking the return of $86 million and issued claims against the employees of its Hong Kong branch for $157.3 million. It is worth noting that FTX clients may receive payments for their claims against the exchange totaling $9.2 billion by mid-2024, according to the approved creditor plan.