Crypto exchange Gemini lays off 10% of its staff

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

Joe Rydle | Getty Images

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

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 will have 1,000 employees by November 2022, with some 100 said to have lost their jobs. TechCrunch reported that Gemini had earlier cut its workforce by 7% in July 2022. 10% staff follow up a month ago,

Other crypto firms such as Crypto.com, coinbase, KrakenAnd Produce Has liquidated positions since November 11, the day Sam Bankman-Fried’s crypto exchange ftx filed for bankruptcy. early januaryCoinbase cut its workforce by 20% in a second major round of job cuts in an effort to preserve cash during the downturn in the crypto market.

“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 endured fight over customer funds in recent weeks. also face exchange Legal battle with the Securities and Exchange Commission on an alleged unregistered offering and sale of securities in connection with its partnership with Barry Silbert insolvent company, origin,

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

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.

Crypto broker Genesis files for Chapter 11 bankruptcy

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