A spokesman for cryptocurrency exchange Gemini told CNBC on Monday that the company’s employment will be reduced by 10%.
It’s at least the third round of layoffs for Gemini, which was co-founded by Cameron and Tyler Winklevoss and, unlike many of its contemporaries, is subject to New York banking regulations.
According to PitchBook data, Gemini had 1,000 workers as of November 2022, implying that roughly 100 people lost their jobs. According to TechCrunch, Gemini already reduced its headcount by 7% in July 2022, following a 10% reduction a month earlier.
In recent weeks, Gemini has been embroiled in a struggle for consumer monies. In addition, the exchange is battling the Securities and Exchange Commission over an alleged unregistered offering and sale of securities in connection with its association with Barry Silbert’s bankrupt company, Genesis.
Gemini has been at odds with Silbert’s Genesis Trading, a crypto lending firm that generated large profits for Gemini consumers through Gemini’s high-yield lending product, Gemini Earn.
When FTX declared bankruptcy, the relationship deteriorated. Genesis then suspended loans and redemptions, leaving Gemini customers out of pocket by an estimated $900 million. The series of failures compelled the Gemini Earn product to swiftly follow suit, resulting in its own temporary suspension.
Gemini’s 340,000 clients have grown progressively upset in the months since the Earn program was discontinued. Some people have joined forces to file a class action lawsuit against the exchange.
Genesis declared bankruptcy on January 19. According to the statement, Gemini is the largest unsecured creditor, with $765.9 million – more than $300 million more than the next creditor.
