A spokesperson for Gemini, a well-known cryptocurrency exchange platform, announced that the company is cutting 10% of its workforce. Gemini was co-founded by twins Cameron and Tyler Winklevoss, and this is the third round of layoffs for the crypto exchange platform in less than a year.
Aside from layoffs, the cryptocurrency exchange platform Gemini is also subject to New York banking regulations. According to PitchBook data, Gemini had approximately 1,000 employees in November of last year, with a hundred of them having already lost their jobs.
Cameron Winklevoss stated that they hope to avoid further layoffs by laying off employees. “Persistently negative macroeconomic conditions and unprecedented fraud perpetrated by bad actors in our industry have left us with no choice but to revise our outlook and further reduce headcount,” he added.
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Crypto Firms Lays Off Employees
Prior to this layoff, Gemini reportedly reduced its workforce by 7% in July 2022. Gemini experienced another 10% layoff after a month. However, Gemini is not the only exchange platform that has reduced its staff. It should also be noted that platforms such as Crypto.com, Coinbase, Kraken, and Genesis laid off employees in November 2022, the same month that FTX declared bankruptcy.
Furthermore, Coinbase will have their second round of layoffs in early 2023, with approximately 20% of its employees being let go. The reason given was to be able to save money during the crypto market downturn.
The Rough Patch of Gemini
Gemini has been going through a rough patch in recent weeks, as it is currently fighting for customer funds. Furthermore, the Securities and Exchange Commission has filed allegations against it for unregistered offering and sale of securities in connection with its partnership with Genesis.
The partnership stems from the high returns generated for Gemini clients through Gemini’s high-yield lending product, Gemini Earn. The issue allegedly began when FTX declared bankruptcy, forcing Genesis to halt lending and redemptions.
The aforementioned move has cost Gemini customers an estimated $900 million. This series of setbacks has prompted Gemini Earn to quickly follow suit with its own temporary suspension. During the time that the Earn product was halted, more and more Gemini customers became dissatisfied, and some of them filed a lawsuit.
Genesis, on the other hand, has recently filed for bankruptcy protection; its filing list includes the 50 largest unsecured creditors, including Gemini at $765.9 million.