Home World Crypto exchange Gemini lays off 10% of workforce

Crypto exchange Gemini lays off 10% of workforce

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Tyler Winklevoss and Cameron Winklevoss (LR), co-founders of Gemini crypto exchange, on stage at Bitcoin Convention 2021 in Miami, Florida.

Joe Riddle | Getty Images

Crypto exchange Gemini will cut staff by 10%, a spokesperson told CNBC on Monday.

This is at least the third cut in less than a year for Gemini, which is founded by twins Cameron and Tyler Winklevoss, and unlike many of its peers subject to New York banking regulation.

According to data from PitchBook, Gemini had 1,000 employees as of November 2022, suggesting that about 100 people have lost their positions. TechCrunch previously reported that Gemini had cut staff by 7% in July 2022. after 10% of staff a month earlier.

Other crypto firms like Crypto.com, Coinbase, Krakenand Being have liquidated positions since November 11, the day Sam Bankman-Fried’s crypto exchange FTX filed for bankruptcy. In early JanuaryCoinbase has cut 20% of its workforce in its second major round of job cuts to conserve cash during the crypto market downturn.

“We had hoped to avoid further reductions beyond this summer, however persistent negative macroeconomic conditions and unprecedented fraud perpetuated by bad actors in our industry have left us with no choice but to revise our forecast and cut staff further,” wrote Cameron Winklevoss. in an internal message received Information.

The twins survived a the battle for customer funds in recent weeks. Exchange also faces a legal battle with the Securities and Exchange Commission on the alleged unregistered placement and sale of securities in connection with Barry Silbert’s partnership Bankrupt Genesis.

Gemini has been embroiled in an intense spat with Genesis Trading Silbert, a crypto lending firm that has generated high returns for Gemini clients through Gemini’s highly profitable lending product known as Gemini Earn.

The relationship soured when FTX filed for bankruptcy. Soon after, Genesis froze loans and repayments, costing Gemini customers about $900 million. The chain of failures also prompted the Gemini Earn product to quickly follow suit with its own temporary suspension.

In the months since the Earn product was discontinued, Gemini’s 340,000 customers have grown increasingly frustrated. Some united in a class action against exchange.

Genesis filed for bankruptcy protection on January 19. The filing lists the top 50 unsecured lenders, with Gemini topping the list with $765.9 million — more than $300 million more than the next lender.

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