ByBit CEO clarifies Mirana exposure to bankrupt Genesis

ByBit CEO Ben Zhou said his exchange’s exposure to bankrupt crypto lender Genesis was restricted to its investment arm Mirana.

Genesis Global’s chapter 11 filing showed that Mirana was one of its top five creditors — the lender owes the investment firm $151.5 million.

Zhou said Mirana only managed some of ByBit’s assets, adding that the firm’s clients’ funds were separated and its earn product does not use Mirana.

The ByBit CEO further clarified that the $151 million exposure was collateralized by around $120 million which Mirana had liquidated already.

Community questions ByBit

The crypto community has raised further questions about ByBit’s earn product. Some members of the community asked how the product was managed and how its yield was generated.

Kosen Labs CEO Miljan Martic tweeted that the “numbers don’t add up” and there was “no proof of anything on (the) blockchain.” According to him, Zhou also employed “dubious language” in his clarification.

Diyan Slavov questioned if ByBit was “running an FTX/Alameda kind of relationship,” while several others requested proof of transactions between the exchange and its investment arm.

Meanwhile, several others praised the timeliness of Zhou’s clarifications.