Co-founder and CEO Ben Zhou of Bybit commented on the community’s reaction to the fact that the Bitcoin exchange had become one of Genesis Global’s largest creditors in bankruptcy.
Full disclosure:
1. Mirana is the investment arm of bybit.
2. Mirana only manage some bybit company asset. Client fund is separated snd bybit earn product doesn’t use mirana.
3. The reported 151m has abt 120m of collateralized positions which mirana had already liquidated. https://t.co/kqVPpAMGky— Ben Zhou (@benbybit) January 20, 2023
According to the crypto-lending platform’s statement, the debt of Mirana, affiliated with the exchange, stands at $151.5 million. The amount trails only Gemini’s obligations to the Winklevoss brothers — $765.9 million.
Zhou confirmed that Mirana is the company’s investment arm. According to him, the structure manages “some assets” Bybit.
“Customer funds are segregated and the exchange’s yield-generating product does not use Mirana. The stated $151 million includes about $120 million of collateralized positions that the firm has already liquidated,” Zhou said.
Users in the comments noted the vagueness of the wording regarding the volume of assets under the subsidiary’s management. Questions were also raised about the transparency of Bybit Earn’s yield product and its income sources.
1. How is Bybit Earn managed ?
2. From where is the yield generated ?
3. which third parties are responsible for generating yield ?
4. What type of risk controls exist to prevent a Genesis situation ?— Sir Lose Alot (@AlotLose) January 20, 2023
One of the commentators pointed to the discrepancy in figures and the lack of on-chain data supporting the Bybit head’s claims about liquidated positions.
“Hi, Ben. The blockchain doesn’t lie. Can you share any transaction records of Mirana?”
Hi Ben,
Blockchain doesn’t lie.
Can you share some transaction records of Mirana?
— Derivatives Exchange Investigator (@bitcatshow) January 20, 2023
Some considered the belated disclosure of a fairly large Genesis position suspicious, as Genesis has for several months has been experiencing serious financial problems. Users noted that the Winklevosses at this time were actively trying to recover funds from Gemini with bringing the dispute into the public arena.
In December Bybit announced staff cuts and reorganising the structure to reduce costs in a protracted market downturn.
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