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Bybit founder addresses concerns about company's $151 million commitment to bankrupt Genesis
Ben Zhao, the founder of crypto exchange Bybit, took to Twitter to address concerns about the company's exposure to now-bankrupt crypto lender Genesis Global Capital. According to court documents, Genesis owes $3.4 billion to its top 50 creditors, including Bybit's investment unit Mirana. The filing shows that the crypto lender owes Mirana approximately $151 million. Zhao: Bybit's Earn product does not use Mirana In response In a tweet mentioning Mirana's involvement with Genesis, Zhao explained that the reported $151 million includes around $120 million in collateralized positions that Mirana had already liquidated. He added that...
Bybit founder addresses concerns about company's $151 million commitment to bankrupt Genesis
Ben Zhao, the founder of crypto exchange Bybit, took to Twitter to address concerns about the company's exposure to now-bankrupt crypto lender Genesis Global Capital.
According to court documents, Genesis owes $3.4 billion to its top 50 creditors, including Bybit's investment unit Mirana. The filing shows that the crypto lender owes Mirana approximately $151 million.
Zhao: Bybit's Earn product does not use Mirana
InAnswerIn a tweet mentioning Mirana's involvement with Genesis, Zhao explained that the reported $151 million includes around $120 million in collateralized positions that Mirana had already liquidated.
He added that the investment firm only manages a portion of Bybit's assets. Zhao also explained that customer funds are segregated and Bybit Mirana's Earn product is not used.
Full disclosure:
1. Mirana is the investment arm of bybit.
2. Mirana only manages some assets of the Bybit company. Customer funds are segregated and the Bybit Earn product does not use Mirana.
3. The reported 151 million has about 120 million secured positions that mirana had already liquidated. https://t.co/kqVPpAMGky
— Ben Zhou (@benbybit) January 20, 2023
Reactions from the crypto community
The Bybit founder's tweet sparked several reactions on Crypto Twitter, with some users questioning the timing of the clarification as Genesis' financial problems were repeatedly reported before it eventually filed for bankruptcy.
A Twitter user requested that Bybit provides the full details of their products, including how they are managed, where they are generated and the third parties responsible for generating returns.
Another user specified that the tweet reminded him of Caroline Ellison, the former CEO of Alameda Research, who said the former SBF-led empire's financial situation was healthy before it filed for bankruptcy in November.
Genesis bankruptcy filing
genesisfiledfor Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York on January 19 after facing a severe liquidity crisis resulting from extreme market conditions and exposure to several bankrupt companies, includingFTX.
According to court documents, the crypto lender has over 100,000 creditors, between $1 billion and $10 billion in assets and liabilities of the same value.
The crypto exchange is one of the largest creditorsGeminiMoonalpha Financial (Babel Finance), Coincident Capital International Ltd, Donut Inc, Altcoinomy SA and VanEck New Finance Income Fund LP.