- Two of Genesis’ creditors have taken issue with the crypto lender’s “sloppy” bankruptcy filing.
- Mirana and Cumberland have accused the crypto lender of including inaccurate and misleading information in the filing.
- Genesis had shown in its filing that both the firms had a combined exposure of $169 million.
Barely hours after Genesis Global filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York, two of the crypto lender’s top ten creditors have gone public alleging misrepresentation of their exposure to the bankrupt firm.
Within hours of the filing, pictures of the chapter 11 document started circulating on Twitter. The document featured a list of Genesis’ top creditors, including Gemini, Babel, and Decentraland. Among these creditors were Mirana and Cumberland.
Users on Twitter were quick to associate Mirana with the popular crypto exchange ByBit. This prompted the exchange’s CEO Ben Zhou to clarify that Mirana was ByBit’s investment arm and that it managed very little of the exchange’s assets. Additionally, $120 million of the claimed $151 million of exposure were in the form of collateralized positions, which were already liquidated.
This was followed by a tweet from Jonathan Allen, the Managing Partner of Mirana Ventures. Allen revealed that Mirana Asset Management was the entity that was tied to Genesis and that Mirana Ventures is a separate entity. He criticized Genesis’ for the way it had chosen to represent creditor information in the filing, describing it as “sloppy”.
Genesis came under fire from Cumberland as well. In the spirit of transparency, crypto trading firm Cumberland published the details of its relationship with the bankrupt lender. The details revealed that an exposure of $18 million existed till November 2022 in the form of a fully collateralized loan.
However, the loan was settled after Cumberland surrendered the collateral on 16 November following a recommendation from its risk management team. The current exposure stands at a little more than $46,000. “Genesis’ bankruptcy filing today reflects misleading and incorrect information,” the firm stated.
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Source: https://coinedition.com/creditors-take-issue-with-genesis-sloppy-bankruptcy-filing/