The FTX bankruptcy saga has moved forward with a substantial settlement from the crypto exchange Bybit, which amounts to $228 million. This settlement is crucial as it contributes to the already approved cash distribution plan, which aims for a recovery of up to $16.3 billion to former customers and creditors.

Key Details:

• The recent agreement includes the recovery of $175 million in assets held in Bybit accounts.
• Bybit will also purchase FTX debtors' BIT tokens for approximately $53 million. This move is intended to recoup value from less liquid assets.

Originally, FTX sought $953 million from Bybit, claiming misappropriation of funds prior to its collapse in late 2022. The bankruptcy court recently approved a plan anticipating significant repayments to creditors, averaging 118% of their holdings at the time of FTX's bankruptcy.

Note: While these settlements seem promising, creditors may not benefit from the price recovery of crypto assets that occurred while their funds were locked during the bankruptcy proceedings.

The cash payouts are expected to take place within 60 days, reaffirming FTX's commitment to returning funds to its stakeholders.