• Bybit CEO Ben Zhou clarified that Bybit had $150 million exposure to the bankrupt crypto lender Genesis Global Trading via its investment arm Mirana.
• Zhou noted that the exposure has about $120 million of collateralized positions, which Mirana had already liquidated.
• The community questioned Bybit’s timing in revealing their exposure and demanded proof.
Bybit is one of the most popular cryptocurrency trading platforms, offering users a wide range of trading instruments and features. On January 20th, 2023, the company’s CEO Ben Zhou offered clarity on Bybit’s exposure to Genesis Global Trading, a prominent crypto lender that had filed for Chapter 11 bankruptcy protection.
Zhou stated that Bybit had $150 million exposure to Genesis via its investment arm Mirana. He clarified that Mirana only managed a portion of Bybit’s assets, and the reported $151 million exposure has about $120 million of collateralized positions, which Mirana had already liquidated. He also assured that client funds are separated and Bybit’s earn products don’t use Mirana.
Nevertheless, the community questioned Bybit’s timing in revealing their exposure, with many demanding proof to back up the reassurance from the CEO. Questions were raised about the company’s earn products and how much exposure the company actually had.
Bybit’s quick response and clarification was well-received by the community, but many remain skeptical about the company’s involvement with the bankrupt lender. As the crypto industry continues to evolve, it is important for companies like Bybit to remain transparent and accountable when it comes to their exposure to external sources. Transparency and timely disclosure of information can help to build trust in the cryptocurrency industry, and should be a priority for companies operating in the space.