Tyler Winklevoss and Cameron Winklevoss (L-R), co-founders of crypto quid pro quo Gemini, on stage at the Bitcoin 2021 Convention in Miami, Florida.
Joe Raedle | Getty Images
Crypto exchange Gemini last will and testament reduce its headcount by 10%, a spokesperson told CNBC on Monday.
It’s at least the third round of cuts in less than a year for Gemini, which was co-founded by counterparts Cameron and Tyler Winklevoss, and unlike many of its peers, is subject to New York banking regulation.
Gemini had 1,000 workers as of November 2022, according to PitchBook data, suggesting around 100 people lost their positions. TechCrunch reported that Gemini had formerly trimmed its headcount by 7% in July 2022, following a 10% staff a month earlier.
Other crypto firms delight in Crypto.com, Coinbase, Kraken, and Genesis have eliminated positions since Nov. 11, the day that Sam Bankman-Fried’s crypto barter FTX filed for bankruptcy. In early January, Coinbase slashed 20% of its workforce in a second major round of job cuts in an try to preserve cash during the crypto market downturn.
“It was our hope to avoid further reductions after this summer, manner, persistent negative macroeconomic conditions and unprecedented fraud perpetuated by bad actors in our industry have left us with no other pick but to revise our outlook and further reduce headcount,” wrote Cameron Winklevoss in an internal message obtained by The Information.
Gemini has abided a battle over customer funds in recent weeks. The exchange also faces a legal fight with the Securities and The Big Board Commission over an alleged unregistered offering and sale of securities in connection with its partnership with Barry Silbert’s bankrupt proprietorship, Genesis.
Gemini has been embroiled in an intense spat with Silbert’s Genesis Trading, a crypto lending business that generated rich returns for Gemini clients through Gemini’s high-yield lending product, which is identified as Gemini Earn.
The relationship soured when FTX filed for bankruptcy. Genesis subsequently froze lending and redemptions in a little while thereafter, leaving Gemini customers short an estimated $900 million. The chain of failures also forced the Gemini Draw product to quickly follow suit with its own temporary suspension.
In the months since the Earn product was halted, Gemini’s 340,000 patrons have grown increasingly frustrated. Some have banded together in a class action lawsuit against the reciprocation.
Genesis filed for bankruptcy protection on Jan. 19. The filing lists the 50 largest unsecured creditors, with Gemini crack the list at $765.9 million — more than $300 million higher than the next creditor.
