Genesis Global Seeks Bankruptcy Protection
2023.01.20 10:17
Genesis Global Seeks Bankruptcy Protection
By Tiffany Smith
Budrigannews.com – On January 20, Genesis Global, a well-known crypto lender, filed for Chapter 11 bankruptcy protection in New York, becoming the latest business to file for bankruptcy following FTX’s demise. The crypto community, on the other hand, has turned its attention to other crypto firms that were exposed to the lending company.
According to one report, a total of nine crypto companies, including Germini, Bybit, VanEck, Decentraland, and a few others, had various exposures to Genesis. Ben Zhou, CEO of Bybit, quickly responded to the reports and made it clear that Bybit’s investment arm Mirana had $150 million of exposure to the failing crypto lender.
Zhou pointed out that Mirana only managed a portion of Bybit’s assets and that Mirana had already liquidated approximately $120 million of collateralized positions in the $151 million exposure. He also said that Bybit’s earn products do not use Mirana and that the client funds are kept separate.
Full disclosure:
- Mirana is the investment arm of bybit.
- Mirana only manage some bybit company asset. Client fund is separated snd bybit earn product doesn’t use mirana.
- The reported 151m has abt 120m of collateralized positions which mirana had already liquidated.
While many appreciated the co-founder’s quick clarification, many others had additional inquiries, particularly regarding the company’s earn products.
One user requested complete disclosure regarding the earn products and the yield generation process. Another user questioned their relationship with Mirana and asked if they followed FTX/Alameda’s strategy.
“We are fine and our users have totally nothing to worry about”
Though, you have an Earn program and didn’t disclose how the yield was generated?
Are you running an FTX/Alameda kind of relationship or nah?
Given that Genesis’ problems have been well-known for a few months and that some of its largest lenders, such as Gemini, have been actively requesting action against Genesis’s parent company, the Digital Currency Group, others were also perplexed by the timing of the revelation. Someone wrote,
“Tweeting ‘full disclosure’ only when caught with your pants down automatically refutes your claim. If this was ‘full disclosure’ ByBit would have said it months ago.”
In addition to reminding Zhou that similar statements had been made in the past by individuals such as FTX executives, many others demanded proof of transactions that took place between Bybit and Marina for the sake of assurance.
Thanks for being quick to respond to this. Just know everyone is still on edge regardless. The more proof/evidence you can provide, the better people will feel
