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Crypto exchange Gemini co-founders Tyler Winklevoss and Cameron Winklevoss (LR) on stage at the Bitcoin 2021 Convention in Miami, Florida.
Joe Ladle | Getty Images
Cryptocurrency exchange Gemini will cut its workforce by 10%, a spokesperson told CNBC on Monday.
It’s the third cut in at least a year for Gemini, co-founded by twins Cameron Winklevoss and Tyler Winklevoss, and unlike many of its peers, it’s subject to New York banking regulations.
Data from PitchBook suggests Gemini had 1,000 employees as of November 2022, with about 100 jobless. TechCrunch reported that Gemini has cut its headcount by 7% of his in July 2022.
other crypto companies like Crypto.com, coin baseKraken, and Genesis have been removing their positions since November 11, when the Sam Bankman-Fried crypto exchange took place. FTX filed for bankruptcy. In early January, Coinbase cut 20% of its workforce in a second major layoff to preserve cash during a downturn in the crypto market.
Cameron Winklevoss said: “While we had hoped to avoid further cuts this summer and beyond, persistently negative macroeconomic conditions and unprecedented fraud by industry villains have forced us to revise our outlook. , we had no choice but to cut staff further,” he wrote. In an internal message obtained by The Information.
Gemini has endured a battle over customer funds in recent weeks. The exchange is also facing a legal battle with the Securities and Exchange Commission over alleged unregistered offerings and sales of securities in connection with Barry Silbert’s partnership with bankrupt Genesis.
Gemini has been embroiled in a heated dispute with Genesis Trading of Silbert, a cryptocurrency lending firm that has generated rich revenues for Gemini clients through Gemini’s high-yield lending product known as Gemini Earn.
The relationship soured when FTX filed for bankruptcy. Genesis froze loans and reimbursements shortly thereafter, leaving Gemini customers an estimated $900 million shortfall. A series of failures forced a temporary suspension of Gemini Earn products as well.
In the months since the Earn product was discontinued, Gemini’s 340,000 customers are becoming increasingly frustrated. Some have even banded together in a class action lawsuit against the exchange.
Genesis filed for bankruptcy protection on January 19. The filing lists the 50 largest unsecured creditors, with Gemini topping the list with her $765.9 million, more than $300 million higher than her next creditor. increase.
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