Bybit CEO Confirms Exposure of $150M to Bankruptcy Filed Genesis

  • The CEO confirmed that the company’s investment arm, Mirana, did have $150M in exposure.
  • Mirana had already liquidated around $120 million in collateralized holdings as per Zhou.

On January 20th, major cryptocurrency lender Genesis Global Trading became the latest firm to declare bankruptcy. In the aftermath of FTX’s demise by filing for Chapter 11 bankruptcy protection in New York. The crypto community, however, is now more concerned about other businesses that were exposed to the lending organization.

According to the report, nine different cryptocurrency companies, including Gemini, Bybit, VanEck, Decentraland, and others, have exposure to Genesis. Immediately after the rumors surfaced. Bybit CEO Ben Zhou responded and confirmed that the company’s investment arm, Mirana, did have $150 million in exposure to the defunct crypto lender.

Zhou pointed out that just a fraction of Bybit’s assets were under Mirana’s management. And that of the supposedly $151 million in exposure, Mirana had already liquidated around $120 million in collateralized holdings. He further confirmed that customers’ monies are kept separate and that Mirana is not used in any way by the Bybit earning programmes.

Investors Concerned Over Exposure

Many were grateful for the co-prompt founder’s response, but many still had concerns after hearing it, particularly concerning the company’s earn products.

Detailed information about the earn products and their yield generation was requested by one user. Another person wondered about their connection to Mirana and whether or if they followed a similar tactic to FTX/Alameda.

Other people wondered why the revelation happened now, considering the history of difficulty in the book of Genesis. Major investors like Gemini have been pushing for action from Genesis’s parent firm, Digital Currency Group. 

Others have reminded Zhou that FTX officials have previously made similar comments and have asked for evidence of transactions between Bybit and Marina.

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