Key takeaways:
- Bybit’s Founder Discusses concerns About the Company’s $151 Million Exposure to Bankrupt Genesis.
- Genesis owes its top 50 creditors, which includes Bybit’s investment division Mirana, $3.4 billion, according to court documents.
ByBit CEO Ben Zhou said that only its investment subsidiary Mirana had some exposure to the insolvent cryptocurrency lender Genesis. Genesis Global followed a similar course after FTX‘s demise and submitted a Chapter 11 bankruptcy petition in New York.
The crypto lender, according to court documents, has over 100,000 creditors, assets that value between $1 billion and $10 billion, and debt worth the same amount.
The second-largest identified creditor after Gemini is Singapore-based Mirana Corp, which owes about $151.5 million in total.
Ben Zhao, the founder of Bybit, tweeted an explanation of Mirana’s place in the Genesis narrative. He claimed in a tweet that Bybit’s investment division, Mirana, oversaw part of the company’s assets.
According to the research, nine cryptocurrency companies, including Gemini, Bybit, VanEck, and Decentraland, had exposure to Genesis. In a prompt response to the reports, Bybit CEO Ben Zhou revealed that through its investment subsidiary Mirana, Bybit did in fact have a $150 million risk to the insolvent crypto lender.
It is undeniable that the news sparked alarm in the cryptocurrency community. The scenario benefited greatly from Bybit’s clear communication. Users praised the company’s openness in handling the problem.
Some individuals in the community, however, continued to voice concerns with ByBit’s earn product. Some residents of the neighbourhood inquired about the management of the product and the production of its yield.
The CEO of Kosen Labs, Miljan Martic, stated that there was “no proof of anything on the blockchain” and that the “numbers don’t add up.” It was claimed that Zhou’s explanation included “dubious phrasing” as well.
