Genesis Global Capital’s filing for bankruptcy on a cryptocurrency lending platform has created a stir in the crypto world, with creditors estimated to be around 100,000. One of the biggest creditors is Bybit, with an approximate exposure of $152 million due to Mirana Investment.
Ben Zhou, the CEO of Bybit, took to Twitter to explain the situation and clarify the details. He stated that the company had a huge exposure of more than $150 million to the failing crypto lender. He further added that Mirana was already liquidated, and Bybit managed to get a portion of the assets. He also promised that all client funds will be kept separate and protected.
Controversy in the Crypto Community
However, the community wasn’t convinced with the assurances and asked for full transparency with regards to the profit components of the company and the process of generating returns. One user raised concerns about the connection between Bybit and Mirana, inquiring if the company had a similar strategy to FTX Alameda.
GenesisDCG, the parent company of DCG, and its creditors tried various approaches but were unable to reach an agreement. The large sum owed to creditors has caused a huge disruption in the cryptocurrency ecosystem.
