Ben Zhao, the founder of cryptocurrency exchange Bybit, took to Twitter to address concerns raised about the company’s exposure to now-bankrupt cryptocurrency lender Genesis Global Capital.

According to court documents, Genesis owes its top 50 creditors $3.4 billion, including Bybit’s investment unit Mirana. The filing shows that the crypto lender owes Mirana approximately $151 million.

Zhao: Bybit’s earnings product does not use Mirana

In reply To a tweet mentioning Mirana’s exposure to Genesis, Zhao stated that the reported $151 million has about $120 million in collateralized positions, which Mirana had already liquidated.

He added that the investment firm only manages a portion of Bybit’s assets. Zhao also stated that client funds are segregated and Bybit’s earnings product does not use Mirana.

The crypto community reacts

The Bybit founder’s tweet sparked several reactions on Crypto Twitter, with some users questioning the timing of the clarification given that Genesis’s financial woes were repeatedly reported before it finally filed for bankruptcy.

A Twitter user required that Bybit provide full details of its products, including how they are managed, where they are generated, and the third parties responsible for generating the performance.

another user fixed that the tweet reminded Caroline Ellison, the former chief executive of Alameda Research, saying the financial state of the former SBF-led empire was healthy before filing for bankruptcy in November.

Genesis files for bankruptcy

Genesis archived for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of New York on January 19 after facing a severe liquidity crisis, which was due to extreme market conditions and exposure to several bankrupt companies, including FTX.

According to court documents, the crypto lender has more than 100,000 creditors, between $1 billion and $10 billion in assets and liabilities for the same amount.

Some of its biggest creditors include the cryptocurrency exchange GeminiMoonalpha Financial (Babel Finance), Coincident Capital International Ltd, Donut Inc, Altcoinomy SA and VanEck New Finance Income Fund LP.

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