By George Ward
Decentraland has taken to Twitter to defend its exposure to Genesis after the firm filed for bankruptcy. The metaverse giant followed the steps of other firms like Bybit, who have come out to reassure users following Genesis’s bankruptcy filing.
Decentraland Has $7.8 million Exposure To Genesis
Decentraland, in its tweets, stated that it held about $7.8 million credit against Genesis. However, the platform emphasized that this credit had no significant impact on its treasury and did not affect its overall financial situation.
According to the announcement, Decentraland DAO’s treasury is on the blockchain and is not directly connected to the company. Also, the firm reassured its users and investors to stay confident.
However, the statement from Decentraland was not enough to clear the doubt in the community. The Block’s VP of Research, Larry Cermak, is among those who questioned the safety of users’ funds.
In his tweet, he questioned if Decentraland kept all its funds in Genesis. Presently, on-chain data shows that Decentraland’s treasury comprises 3,035.773 USDC, 1,282,002.292 DAI, 40.477 MATIC, 38,484,491.023 MANA, 25.389 wETH, and 34.558 ETH.
Its whole treasury is worth about $300 million. Meanwhile, Decentraland is one of many platforms that have responded to Genesis’s bankruptcy filing.
A few days ago, Ben Zhou, the co-founder, and CEO of Bybit, also addressed the relationship between its investment arm, Mirana, and Bybit. Zhou stated that out of the reported $150 million, the company collateralized $120 million, which Mirana has liquidated.
He also emphasized that the funds of Bybit clients and the Bybit earn product were not linked with Mirana. Furthermore, Cameron Winklevoss, co-founder of Gemini exchange, said Genesis’s bankruptcy filing was a step forward in recovering his customer’s funds.
However, he added that he would be suing DCG and Barry Silbert, noting that the bankruptcy would not protect them from being held accountable for their actions.
Genesis Owes Gemini Over $765M
According to reports, some of Genesis’s creditors include Abra, Mirana, Gemini, and Decentraland. Genesis finally applied for bankruptcy protection after several months of meeting creditors and financial experts to prevent the filing.
Genesis was among the leading crypto lending firms in the world that offered intricate collateral techniques to users.
The creditor list of Genesis, similar to FTX, illustrates the close connections within the cryptocurrency industry. For example, Gemini had the highest amount of $765 million, followed by Babel and Bybit at $150 million each.
Previously, Tyler Winklevoss, Gemini CEO, expressed frustrations with DCG’s restructuring process. In addition, Tyler accused Barry Silbert, the CEO of DCG, of defrauding Gemini Earn investors.