By George Ward
On Friday, the crypto lender, Genesis Global Trading, filed for bankruptcy. The crypto lender became the latest major crypto form to file for bankruptcy after FTX’s demise.
However, attention in the crypto community has turned to other companies like Bybit with connections to the lending firm.
Bybit CEO Assures Users That Funds Are Safe
According to a report, over nine crypto entities have some exposure to Genesis. Such firms include Decentraland, VanEck, Bybit, and Gemini.
However, Ben Zhou, the CEO of Bybit, has responded to the recent development. The CEO clarified that the company has an exposure of $151 million to the now-bankrupt crypto lender through Mirana, its investment company.
According to Zhou, Mirana only oversaw a segment of Bybit’s assets. Moreover, the $151 million link with Genesis has collateralized positions of $120 million, which Mirana had already sold off.
He also guaranteed that client funds are kept separate, and Bybit’s Earn products have no connection with Mirana. Although many appreciated the quick explanation from the CEO, a significant number of people had questions.
Bybit Users Express Their Dissatisfaction
Most of the questions had to do with the firm’s earn products. For instance, a user requested complete transparency about the crypto Earn products and the methods used to generate yields.
Another user queried the association between Bybit and Marina, inquiring if they were implementing a similar approach to FTX/Alameda. Others were confused by the timing of Zhou’s revelation, given the well-known difficulties that Genesis was facing.
For weeks, one of Genesis’s major creditors, Gemini, has been actively calling for action against the parent company of Genesis, the Digital Currency Group.
“Posting a “full disclosure” statement only when you are caught in the act refutes the validity of your claim. If this was truly “full disclosure,” ByBit should have mentioned it months ago,” a Twitter user wrote.
Furthermore, several individuals asked Zhou for evidence of transactions between Mirana and Bybit. Others reminded the CEO that executives of FTX made similar statements before the company finally crumbled.