Genesis ‘Sloppy’ Bankruptcy Filing is Criticized by Cumberland and Mirana Ventures

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Last Updated on January 22, 2023 by Bitfinsider

Genesis Global’s bankruptcy filing was criticized for being inaccurate by the cryptocurrency trading firm Cumberland and the investment firm Mirana Ventures, who called it “misleading and erroneous” and “sloppy.”

Late on Thursday, Genesis’ lending division filed for Chapter 11 bankruptcy protection. A list of its top 50 unsecured claims totaling more than $3.6 billion was included in the filing. The allegations include a number of well-known cryptocurrency companies, including a $53 million debt to VanEck’s New Finance Income Fund and $30 million owed to Plutus Lending, a part of the cryptocurrency platform Abra.

Jonathan Allen, the creditor contact for the fifth-largest claim, criticized the file for being “sloppy” and false. The contact for the $151 million claim from the Mirana Corporation is described as Allen, a managing partner of Mirana Ventures.

Allen said via Twitter: “Mirana Ventures is not a creditor and has no exposure to this. I have no connection to Mirana AM and much of the info including the amount is incorrect,” pointing out that the Mirana investment arm’s two distinct divisions are Mirana Asset Management and Mirana Ventures.

Source: Twitter

Connection to Bybit

The most recent listing for the CEO of Mirana Asset Management is Sean Tan. It is referred to as having one of the largest global proprietary digital asset portfolios. An inquiry for comments was not immediately answered by ByBit or Tan.

Ben Zhou, the CEO of Bybit, stated that Mirana is Bybit’s investment division and that it solely manages corporate assets. Online directories show Mirana Ventures as a business partner of Bybit and BitDAO.

Zhou said: “Client fund is separated [and] Bybit earn product doesn’t use Mirana,” highlighting that the $151 million was broken down into about $120 million in collateralized positions that had been liquidated.

The trading business Cumberland had a similar experience, claiming that the file contained “misleading and incorrect” information. The company said that by giving up its security, it had reduced a Genesis loan from $18 million in November to just over $46,000. The firm stated in a statement: “We have established no further borrows from Genesis and have no additional exposure.”

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