Crypto lender Genesis Global Capital recently filed for Chapter 11 bankruptcy proceedings in New York. Now, Bybit has been caught in the crossfire due to ties between Mirana, her investment arm, and Genesis.
Bybit founder Ben Zhao took to Twitter to clarify Mirana’s position in the Genesis saga. In his tweet, he said that Mirana was the investment arm of Bybit and managed some assets of the Bybit company.
Ben Zhao’s response was prompted by an earlier tweet that mentioned Mirana (Bybit) among Genesis creditors. He added that the Bybit Earn Product uses something other than Mirana because the Client Fund is run separately.
Trading giant Mirana Corp is among the largest creditors involved with Genesis Global Capital. Therefore, it is anticipated that the company’s bankruptcy filing will affect Mirana’s transactions in one way or another.
Genesis reportedly owes Mirana about $151 million. However, in his tweet, Ben Zhao said that the $151 million reported had $120 million in unsecured positions. He added that Mirana had already liquidated most of these positions.
Despite his attempt to defend Mirana’s position in the Genesis bankruptcy saga, many people on Twitter did not seem pleased.
Also, there is the obvious question of whether this is just a defense trick and whether investors would lose the remaining unsecured $30 million.
2022 was a pretty bad year when it came to cryptocurrencies. Towards the end, various companies in the space needed help to stay afloat. Genesis was one, but not the only, company affected by the crypto winter. The firm has laid off up to 30% of its workforce in recent weeks. These recent layoffs came after the company gave up another 20% in June 2022.
