• Bybit Founder Ben Zhao addressed concerns on Twitter about the company’s exposure to the now-bankrupt crypto lender Genesis Global Capital.
• According to court filings, Genesis owes its top 50 creditors $3.4 billion, including Bybit’s investment unit Mirana, who are owed approximately $151 million.
• Zhao clarified that the reported $151 million has around $120 million of collateralized positions, which Mirana had already hedged out.
Crypto exchange Bybit recently had to address concerns raised over its exposure to the now-bankrupt crypto lender Genesis Global Capital. Ben Zhao, the founder of Bybit, took to Twitter to address the situation, which has now been clarified.
According to court filings, Genesis Global Capital, who were one of the biggest lenders in the cryptosphere, owe their top 50 creditors a total of $3.4 billion. Among those creditors is Bybit’s investment unit Mirana, who are owed approximately $151 million.
In response to a tweet mentioning Mirana’s exposure to Genesis, Zhao stated that the reported $151 million has around $120 million of collateralized positions, which Mirana had already hedged out. He also explained that Bybit’s Earn product does not use Mirana’s balance, and that the company has been managing the situation actively.
Zhao also assured that the company’s core business operations are not affected by the situation with Genesis, and that Bybit is committed to providing a secure and reliable trading environment for its users.
The bankruptcy of Genesis Global Capital is a reminder of the importance of exercising caution when making investments in the crypto space. While Bybit’s founder has clarified the impact of the bankruptcy on the company’s operations, investors should always do their own research and ensure that the entities they are investing with are reputable and reliable.