Tyler Winklevoss and Cameron Winklevoss (LR), co-founders of crypto exchange Gemini, on stage at Bitcoin Conference 2021 in Miami, Florida.
Joe Raedle | beautiful pictures
A spokesperson for the Gemini cryptocurrency exchange will reduce its headcount by 10%, a spokesperson told CNBC on Monday.
This is at least the third cut in less than a year for Gemini, co-founded by twins Cameron and Tyler Winklevoss, and unlike many of its peers, is subjects New York banking regulations.
Gemini has 1,000 employees as of November 2022, according to PitchBook data, which shows about 100 people have lost their jobs. TechCrunch reported that Gemini previously cut its headcount by 7% in July 2022, follow 10% of employees a month before.
Other crypto companies like Crypto.com, Coinbase, Krakenand so bright removed positions as of November 11, the day Sam Bankman-Fried .’s crypto exchange FTX filed for bankruptcy. early januaryCoinbase has cut 20% of its workforce in its second major round of job cuts in an effort to preserve cash during a crypto market downturn.
Cameron Winklevoss wrote: “We hope to avoid further cuts after this summer, however, persistent negative macroeconomic conditions and unprecedented fraud perpetrated by bad actors in our industry. We have left us with no choice but to review our outlook and continue to cut staff.” in an internal message obtained by Information.
Gemini has suffered a customer money battle in recent weeks. The exchange also faces a Legal battle with the Securities and Exchange Commission of an alleged unregistered securities offering and sale in connection with a partnership with Barry Silbert’s bankruptcy company, Genesis.
Gemini has been embroiled in a heated controversy with Silbert’s Genesis Trading, a cryptocurrency lending company that has generated high returns for Gemini customers through Gemini’s high-yield lending product, which has been approved by Gemini. called Gemini Earn.
The relationship soured when FTX filed for bankruptcy. Genesis then froze its lending and buyback operations shortly thereafter, leaving Gemini customers about $900 million short. The string of failures also forced the Gemini Earn product to quickly follow suit with its own temporary suspension.
In the months since the Earn product was halted, Gemini’s 340,000 customers have grown increasingly frustrated. Some have linked together in a class action lawsuit against exchange.
Genesis filed for bankruptcy protection on Jan. 19. The filing lists the 50 largest unsecured creditors, with Gemini topping the list with $765.9 million — $300 million more than that. next creditor.
