Crypto exchange Gemini lays off 10% of workforce in its latest round of cuts

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  • Crypto exchange Gemini will reduce its headcount by 10%, a spokesperson told CNBC on Monday.
  • Gemini joins a long list of crypto companies that have announced or deepened staff cuts in the months following FTX’s November 2022 bankruptcy protection filing.
  • This is at least the third round of cuts in less than a year for the exchange, which was co-founded by twins Cameron and Tyler Winklevoss.

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Crypto exchange Gemini will reduce its headcount by 10%, a spokesperson told CNBC on Monday.

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It’s the third round of cuts in less than a year for Gemini, which was co-founded by twins Cameron and Tyler Winklevoss and, unlike many of its peers, has subject New York for Banking Regulation.

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

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Other crypto firms such as Crypto.com, coinbaseKraken and Genesis have liquidated positions since November 11, the day Sam Bankman-Fried’s crypto exchange ftx filed for bankruptcy. In early January, Coinbase slashed 20% of its workforce in a second major round of job cuts in an effort to preserve cash during the crypto market downturn.

“It was our expectation to avoid further cuts after this summer, however, persistent negative macroeconomic conditions and unprecedented fraud perpetrated by bad actors in our industry have forced us to revise our outlook and reduce workforce further. option left,” wrote Cameron Winklevoss in an internal message obtained by notice,

Gemini has struggled over client funds in recent weeks. The exchange also faces a legal battle with the Securities and Exchange Commission over an alleged unregistered offering and sale of securities in connection with its partnership with Barry Silbert’s bankrupt company, Genesis.

Gemini has been embroiled in an intense dispute with Silberts Genesis Trading, a crypto lending firm that generated rich returns for Gemini customers through Gemini’s high-yield lending product, known as Gemini Earn. goes.

The relationship soured when FTX filed for bankruptcy. Genesis subsequently halted lending and redemptions shortly thereafter, leaving Gemini customers short an estimated $900 million. The series of failures forced Gemini Earn Products to quickly follow suit with a temporary suspension of its own.

In the months since the Earn product was discontinued, Gemini’s 340,000 customers have become increasingly frustrated. some have banded together 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 $765.9 million — more than $300 million more than the next creditor.

Credit: www.cnbc.com /

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