Bybit CEO Clarifies Company Unaffected By Genesis Crisis
- Bybit co-founder and CEO Ben Zhou said that Mirana is the investment arm of Bybit, but it only manages part of the exchange’s assets and is separated from customer funds.
- Bybit Earn products do not use Mirana. In addition, Genesis secured approximately $120 million worth of collateral on Mirana’s $151 million borrowing, which has since been liquidated.
Shortly after Genesis Global filed for bankruptcy protection, several industry players confirmed their association with the company. Bybit is one of them, and its CEO has clarified issues related to exposure to Genesis to answer questions from the community.
According to a report, nine cryptocurrency companies, including Gemini, Bybit, VanEck, Decentraland, and others, have exposure to Genesis. Ben Zhou, co-founder, and CEO of Bybit, quickly addressed the claims and explained that, through its investment arm Mirana, Bybit did, in fact, have a $150 million exposure to the insolvent crypto lender.
Ben Zhou stated in a tweet that Mirana is a company investment arm, but it only handles a portion of the company’s assets and is not connected to client funds. Mirana is not used by goods from Bybit Earn. On top of that, Genesis obtained collateral for Mirana’s $151 million financing, which was ultimately liquidated, totaling about $120 million.
Some users, however, questioned the exchange’s affiliation with Mirana and inquired as to whether the exchange followed a similar business model to FTX/Alameda.
On January 20, Genesis Global Trading requested Chapter 11 bankruptcy protection in New York, becoming the newest business to do so in the aftermath of FTX’s failure. The cryptocurrency community’s attention has since turned to other businesses that have contact with the loan firm.
Genesis owes its top 50 debtors a total of over $3.5 billion, including the cryptocurrency exchange Gemini, the market leader Cumberland, Mirana, MoonAlpha Finance, and VanEck’s New Finance Income Fund.
These companies make up Genesis’ crypto financing division, which was upended by the collapses of hedge fund Three Arrows Capital and cryptocurrency exchange FTX last year.
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