• Bybit CEO Ben Zhou offered clarity on the company’s exposure to Genesis Global Trading, which filed for Chapter 11 bankruptcy protection.
• Zhou clarified that Bybit had $150 million exposure to the bankrupt crypto lender via its investment arm Mirana, with $120 million of collateralized positions already liquidated.
• He also assured that client funds are separated and Bybit’s earn products don’t use Mirana.
On January 20th, 2023, news broke that Genesis Global Trading, a prominent crypto lender, had filed for Chapter 11 bankruptcy protection in New York. This news sent shockwaves throughout the crypto community, as it became clear that multiple companies had exposure to the lender. One report suggested that a total of nine crypto firms had exposure to Genesis, including Gemini, Bybit, VanEck, Decentraland and others.
In response to the report, Bybit CEO Ben Zhou was quick to offer clarity on the company’s exposure to the bankrupt crypto lender. He noted that Bybit’s investment arm Mirana had $150 million exposure to Genesis, with $120 million of collateralized positions already liquidated. He also assured that client funds are separated and Bybit’s earn products don’t use Mirana.
The swift response from the Bybit CEO was met with both appreciation and demand for proof from the community. Many were eager for more details and reassurance that the company was secure, and demanded transparency from the CEO. In response, Zhou further clarified that Mirana only managed a portion of Bybit’s assets, and that their earn products are not at risk of being affected.
Overall, Zhou’s quick response to the reports of Bybit’s exposure to Genesis, as well as his transparency and assurance that client funds are secure, was praised by the community. While there is still some uncertainty regarding the full extent of the impact of the bankruptcy on the crypto market, many are confident that Bybit is well-positioned to weather the storm and continue to provide a secure and reliable platform for users.