Bybit CEO offers clarity on exposure to Genesis, but community demands more

Genesis Global Trading, a prominent cryptocurrency lender, Filed for Chapter 11 bankruptcy It was secured in New York on January 20th, making it the latest company to declare bankruptcy following the FTX collapse. However, the focus of the cryptocurrency community has shifted to other companies that had influence over lending companies.

According to one report, a total of nine cryptocurrency companies were exposed to Genesis, including Gemini, Bybit, VanEck, and Decentraland. Bybit CEO Ben Zhou was quick to respond to the report, revealing that he actually has $150 million in exposure to bankrupt crypto lenders through Mirana, Bybit’s investment arm. bottom.

Zhou said that Mirana only manages a portion of Bybit’s assets, and that the reported $151 million exposure includes around $120 million in secured positions, which Mirana has already liquidated. said there is. He also assured that the client’s funds are segregated and that Bybit earning products he is not using Mirana.

Full Disclosure:
1. Mirana is the investment arm of bybit.
2. Mirana only manages some bybit company assets. Client funds are segregated and bybit earning products do not use Milana.
3. The reported 151 million includes about 1.2 million secured positions that mirana has already liquidated. https://t.co/kqVPpAMGky

Ben Zhou (@benbybit) January 20, 2023

While many appreciated the quick clarification from the co-founder, many others had further questions about the clarification, especially regarding the company’s revenue product.

Related: Gemini and Genesis Indicted by SEC for Selling Unregistered Securities

1 user requested Full disclosure of earned products and how revenue is generated. Another user questioned their relationship with Mirana, asking if they operate with a similar strategy to FTX/Alameda.

“We are fine and users have absolutely nothing to worry about.”

But do you have an earning program and don’t disclose how the revenue is generated?

Are you building a relationship like FTX/Alameda? https://t.co/pumAdQFvRe

Diyan Slavov (@diyan_slavov) January 20, 2023

Some were puzzled by the timing of the revelation, given Genesis’ well-known issues. Some of the largest lenders, such as Gemini, Demand aggressive action from Genesis’ parent company, Digital Currency Group. one user wrote

“Tweeting ‘full disclosure’ only when you’re caught with your pants down will automatically refute your claim. you would have said that “

While many others have requested proof of transactions between Bybit and Marina for security purposes, Made to remember Zhou said similar statements have been made in the past by FTX executives.

Thank you for your prompt response to this. Anyway, just know that everyone is still on edge.The more proof/evidence you can provide, the better people feel

CryptoData (@TheCryptoData) January 20, 2023

Cointelegraph reached out to Bybit to clarify its earning program and raise some community questions, but received no response by the time of publication.