FTX files billion-dollar lawsuit against ByBit over asset withdrawals

Presumably, ByBit is utilizing these assets as take advantage of to look for healing for a remaining balance of $20 million that it might not withdraw from FTX before its collapse.The suit claims that in October 2021, a ByBit executive independently exposed to FTX that the company managed BitDAO, now known as Mantle, despite providing BitDAO as a decentralized company run by community members. In May 2023, ByBit approached the FTX bankruptcy estate about reversing the deal, even though the value of the BIT tokens, roughly $50 million at the time, far exceeded the worth of the FTT tokens, approximately $4 million at the time.After FTX declined the “illogical proposal,” BitDAO promptly rebranded as Mantle, presenting MNT tokens for BIT holders to convert at a 1:1 ratio. As FTX began its conversion, BitDAO supposedly handicapped it and held a “neighborhood vote” to decide on restricting FTX from transforming its tokens.Related: Ex-FTX officers group up to build brand-new crypto exchange 12 months after FTX collapse: ReportAccording to the suit, FTX informed ByBit that the action violated the automated stay in Chapter 11 insolvency.