Genesis Global Trading, a prominent crypto lender, filed for Chapter 11 bankruptcy protection in New York on Jan. Genesis global trading, a leading crypto lender, filed for chapter 11 insolvency protection in New York on Jan. 20, becoming the last business to go bankrupt following the collapse of ftx.
But the crypto community's attention shifted to other companies that had exposure to the loan company. A report suggested that a total of nine crypto companies were exposed to genesis, including gemini, bybit, vaneck, decentralized and other.
CEO of bybit ben zhou was quick to respond to reports and said bybit actually had $150 million of crypto lender bankruptcy exposure through its mirana investment branch. Zhou noted that Mirana only managed part of the bybit assets and that the reported exposure of USD 151 million included approximately USD 120 million of secured positions, which Mirana had already liquidated.
Full disclosure:
1. Mirana is the investment arm of bybit.
Full disclosure: 1. mirana is a bybit investment branch. 2. mirana is responsible for only part of its assets.
The customer fund is segregated snd by bit earn product does not use mirana. https://t.co/kqVPpAMGky
— Ben Zhou (@benbybit) Htgst://t. co/pumAdQFvRe— Diyan Slave (@diyan_slavov)
Htgst://t. co/kqVPpAMGky— Ben Zhou (@benbybit) 20 January 2023.
Related: Gemini and Genesis charged by SEC with selling unregistered securities
One user demanded full disclosure about the earn products and how yields are generated. Related: Gemini and Genesis Charged By Sec To Sell Unregistered Titles User Required Full Disclosure About Products Earned and How Returns Are Generated.
"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?
"we are well and our users have absolutely nothing to fear"although, you have a winning program and did not reveal how the performance was generated? https://t.co/pumAdQFvRe
— Diyan Slavov (@diyan_slavov) January 20, 2023
Others were puzzled by the timing of the revelation, given Genesis’s well-known troubles. Some of its biggest lenders, such as Gemini, have been actively demanding action against Genesis’s parent company, the Digital Currency Group. One user wrote,
“Tweeting ‘full disclosure’ only when caught with your pants down automatically refutes your claim. One user wrote, "Tweeting "full disclosure" only when you're stuck with your pants down automatically disproves your request. If it was a "comprehensive disclosure"
Many others demanded proof of transactions between Bybit and Marina for assurance while reminding Zhou that similar statements have been made in the past by FTX executives.
If this was ‘full disclosure’ bybit would have said it months ago.”ByBit has been saying this for months." Thank you for your prompt answer to that question. The more proof/evidence you can provide, the better people will feel
— CryptoData (@TheCryptoData) January 20, 2023
Cointelegraph reached out to Bybit to get some clarity on its earn program and raise some of the community’s questions but received no response by the time of publication.