Bybit founders address concerns about the $ 151 million commitment of the company for bankrotting genesis

Bybit founders address concerns about the $ 151 million commitment of the company for bankrotting genesis

Ben Zhao, the founder of the crypto exchange bybit, went to Twitter in order to address concerns about the company's commitment to the now bankruptcy rotting crypto loan Genesis Global Capital.

According to court files, Genesis owes its 50 most important creditors 3.4 billion US dollars, including Bybits's investment unit Mirana. The submission shows that the crypto loan Mirana owes about $ 151 million.

ZHAO: Mirana does not use the Earn product from Bybit

in Answer in a tweet in which Mirana's commitment was mentioned at Genesis, Zhao said that the reported $ 151 million contained around $ 120 million in secure positions that Mirana had already liquidated.

He added that the investment company only managed part of the assets of bybit. Zhao also explained that customer money is separated and the EARN product from Bybit Mirana is not used.

complete disclosure:
1. Mirana is the investment arm by Bybit.
2. Mirana only manages a few assets from the Bybit company. The customer money is separated and the Bybit-ear product does not use Mirana.
3. The reported 151 million have around 120 million secured positions that Mirana had already liquidated. https://t.co/kqvppamgky

-Ben zhou (@benbybit) 20. January 2023

Reactions of the crypto community

The tweet of the Bybit founder triggered several reactions to Crypto Twitter, with some users questioning the time of clarification, since the financial problems of Genesis were repeated before it finally reported bankruptcy.

a Twitter user requested that Bybit provides the complete details of your products, including the way they are managed where they are generated, and the third party responsible for achieving income.

Another user specified that the tweet was reminiscent of Caroline Ellison, the former CEO of Alameda Research, which said that the financial situation of the former SBF-led Empire was healthy before she registered bankruptcy in November.

Genesis bankruptcy application

Genesis Submitted for insolvency protection according to Chapter 11 Before the US insolvency court for the southern district of New York on January 19, after he was faced with a serious liquidity crisis that was due to extreme market conditions and the commitment in several bankruptcy companies, including ftx .

According to court files, the crypto loan has over 100,000 creditors, between $ 1 billion and $ 10 billion in assets and liabilities in the same value.

One of the largest creditors is the crypto exchange Twins Moonalpha Finance (Babel Finance), Coincident Capital International LTD, Donut Inc, Altcoinomy SA and Vaneck New Finance Fund Lp.