FTX is reportedly going after fellow crypto exchange firm, ByBit, to retrieve funds and digital assets that were withdrawn just before the company’s dramatic collapse last year. Likewise, the firm took the latter to court to pursue “compensatory and punitive damages” related to the token scheme and virtual assets that were previously held on the now-defunct platform.

According to CoinTelegraph, it was the FTX bankruptcy estate, led by its chief, John J. Ray III, that has filed a lawsuit against ByBit. In the suit, Mirana and some executives were also named as defendants.

Complaint Lodge Against ByBit and Others

The firm claimed that ByBit made use of its VIP access and connection with FTX staff to withdraw large amounts of cash and digital tokens from Mirana, affiliated crypto trading Time Research, and executives now long before FTX caved in.

The bankrupt crypto exchange stressed that ByBit exploited its VIP access to withdraw in a scheming way. The firm explained that when it was facing withdrawal issues in November of last year, all of the withdrawal requests from VIP customers' were traced on a prioritized spreadsheet.

In this legal document, it was indicated that the settlement team of FTX prioritized considerable withdrawals made by Mirana. As a result, they were able to transfer more than $327 million to Mirana which is the investment arm of ByBit.

“Mirana’s trading activity and affiliation with Bybit also afforded it preferential treatment from FTX.com relative to the average FTX.com customer,” PYMNTS quoted FTX as saying in the lawsuit filing. “For example, Mirana was granted ‘VIP’ status on the FTX.com exchange, which included concierge support and increased access to FTX Group employees.”

The suit further stated, “Among other things, Mirana leveraged its VIP connections to pressure FTX Group employees to fulfill its withdrawal requests as soon as assets became available, further reducing the funds available to meet withdrawal requests by FTX.com’s non-VIP customers.”

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