A representative for the cryptocurrency exchange Gemini informed CNBC on Monday that they would be laying off 10% of their staff. For Gemini, which was co-founded by Cameron and Tyler Winklevoss and is subject to New York banking regulation, unlike many of its competitors, this is at least the third round of layoffs in less than a year.
According to PitchBook data, Gemini had 1,000 employees as of November 2022, thus, a reduction of about 100 jobs seems likely. TechCrunch stated in July 2022 that Gemini had reduced its workforce by 7%, following a 10% reduction in June 2022.
In recent weeks, Gemini has fought to protect its customers’ money. Since the cooperation with Barry Silbert’s insolvent company Genesis, the exchange has also been involved in a legal battle with the Securities and Exchange Commission over an alleged unregistered offering and sale of securities.
Gemini’s high-yield loan product, Gemini Earn, has gotten the company into a heated spat with Silbert’s Genesis Trading. This cryptocurrency lending service has made a killing for Gemini customers.
As a result of FTX’s bankruptcy filing, ties between the two companies deteriorated. Shortly afterward, Genesis suspended loans and redemptions, leaving Gemini customers short an estimated $900 million. The failed cascade also resulted in the temporary suspension of the Gemini Earn product.
Gemini’s 340,000 clients have become more dissatisfied in the months following the discontinuation of the Earn product. Many have joined forces to file a class lawsuit against the stock market.
On January 19th, Genesis began the process of declaring bankruptcy. There is a list of the 50 largest unsecured creditors in the filing, and Gemini comes in at number one with a claim of $765.9 million. This is more than $300 million higher than the subsequent highest creditor.
Since Sam Bankman-cryptocurrency Fried’s exchange FTX filed for bankruptcy on November 11, several crypto firms, including Crypto.com, Coinbase, Kraken, and Genesis, have slashed employment. For the second time in as many months, Coinbase reduced its personnel by 20% at the beginning of January. The move was made to conserve funds during the bear market in cryptocurrencies.