Genesis Capital has filed for bankruptcy protection with a New York court following a series of troubles with Digital Currency Group, its parent company. Bybit has been caught up in the crossfire as its investment arm reportedly committed sizeable funds to Genesis Capital, prompting its founder to speak out.
Mirana invested heavily in Genesis before bankruptcy
Ben Zhao, the Bybit founder, took to Twitter earlier today to comment on the developments regarding the connection between the now-bankrupt Genesis capital and Bybit.
He commented on an earlier tweet that had pointed at Bybit as a risky entity at the moment following Genesis Capital’s fall. The tweet claimed that Miran(Bybit) is one of Genesis capital’s creditors. The tweet detailed that Bybit had committed around $151M.
Zhao tweeted what he called full disclosure and said that Mirana is Bybit’s investment arm. He added that Mirana is tasked to manage some bybit company assets only and that client funds are separate from the funding that Mirana receives. He added that Bybit’s earn products also do not use Mirana.
Zhao also stressed that of the reported $151M, around $120M is in collateralized positions that Mirana already liquidated before DCG and Genesis capital’s woes.
Series of bankruptcies continues in the crypto space
Genesis capital is one of the many platforms that have met their end in the 2022 bear market. Big names like FTX, Celsius, Voyager, and Blockfi have all filed for bankruptcy. Most of these players have gone under due to poor management and leadership.
Other big crypto empires like Terra Luna have also gone down, claiming the life savings of many. Now, there is no end in sight as even more organizations continue to file for bankruptcy, have lay-offs, and leave the crypto space.
It remains to be seen if the crypto space will learn from its mistakes this bear and do better in the future or if the mayhem will continue. Keep watching FintechExpress.news for crypto and other finance-related news.