• Bybit founder Ben Zhao took to Twitter to address concerns over the company’s $151 million exposure to bankrupt crypto lender Genesis Global Capital.
• Court filings show that Mirana, Bybit’s investment unit, is owed approximately $151 million by Genesis.
• Zhao clarified that Bybit’s Earn product does not use Mirana, and that Mirana has already obtained $120 million of collateralized positions.
The cryptocurrency exchange Bybit recently raised questions in the crypto space following the revelation that its investment unit Mirana was owed $151 million by bankrupt crypto lender Genesis Global Capital. This information was included in court filings, which also showed that Genesis owes its top 50 creditors a combined $3.4 billion.
In response, Bybit founder Ben Zhao took to Twitter to address the concerns raised. He stated that the reported $151 million has around $120 million of collateralized positions, which Mirana had already obtained. Zhao also clarified that Bybit’s Earn product does not use Mirana.
Bybit is a Singapore-based crypto derivatives exchange that offers perpetual contracts with up to 100x leverage. It has seen tremendous growth since its launch in 2018, and currently has a 24-hour trading volume of more than $6 billion.
Genesis Global Capital is a crypto lending firm that went bankrupt in December 2020. It was initially founded in 2013 as a bitcoin mining company, but shifted its focus to providing crypto-backed loans in 2015. Prior to its bankruptcy, it was one of the largest crypto lenders in the world and had lent out more than $1 billion worth of Bitcoin and other cryptocurrencies to institutional investors.
The revelation that Bybit was exposed to Genesis‘ bankruptcy was met with some skepticism in the crypto community due to the high amount owed. However, Zhao’s statement on Twitter has helped to assuage some of these concerns. He also highlighted the fact that Bybit is a separate entity from Mirana, and that its Earn product does not use Mirana.
Overall, Bybit is one of the leading crypto exchanges in the industry and its founder Ben Zhao has been quick to address any concerns raised about the company’s exposure to Genesis. With Zhao’s clarification, investors can be assured that Bybit’s Earn product does not use Mirana and that Mirana has already obtained $120 million of collateralized positions.