On January 20, 2019, renowned cryptocurrency lender Genesis Global Trading became the latest firm to declare bankruptcy in the aftermath of the collapse of FTX. Genesis Global Trading filed for protection under Chapter 11 in New York, becoming the fourth company to do so.
On the other hand, the attention of the cryptocurrency community has recently switched onto other companies that were exposed to the loan company.
According to one source, a total of nine different cryptocurrency companies, including Gemini, Bybit, VanEck, Decentraland, and others, have exposure to the Genesis blockchain.
Ben Zhou, the CEO of Bybit, was quick to reply to the claims and emphasised that his company did indeed have a $150 million exposure to the defunct cryptocurrency lender through its investment arm Mirana.
Zhou made the observation that Mirana only handled a part of Bybit’s assets, and that the estimated $151 million exposure included around $120 million of collateralized holdings, all of which Mirana had previously liquidated.
Additionally, he ensured that customer cash are kept separate and that the various products offered by Bybit do not utilise Mirana.
Although many people were grateful for the swift answer provided by the co-founder, many others still had further concerns about the clarification, particularly concerning the various items offered by the firm.
One of the users sought complete transparency about the earn items and the yield generation process.
Another user raised concerns over their connection with Mirana and inquired as to whether or not they follow a strategy comparable to that of FTX/Alameda.
Others were perplexed by the timing of the revelation, considering the many problems that have been associated with the book of Genesis.
Some of Genesis’s largest lenders, such as Gemini, have been quite vocal in their demands for action to be taken against the Digital Currency Group, which is Genesis’s parent business.
A user commented as follows: “If you tweet “full transparency” only after you have been discovered with your trousers down, then your claim is immediately invalidated.
ByBit would have disclosed this information some months ago if it were considered “full transparency.”
“Many other people wanted evidence that transactions had taken place between Bybit and Marina as a kind of reassurance while also reminding Zhou that previous FTX executives had made comments that were quite similar.
I appreciate the promptness with which you have responded to this.
Please be aware that despite this, everyone is still on edge.
People will have a more positive reaction and feel better about themselves if you can present more proof or evidence. The CryptoData Twitter Account (@TheCryptoData) January 20, 2023