Amid growing uncertainty in the market, Bitcoin exchange Gemini plans to lay off 10% of its workforce.
Bitcoin exchange reduced its workforce by 10%
At this point, Gemini has had at least three rounds of layoffs in the past eight months. On Monday, Gemini President Cameron Winklevoss sent a message to Slack informing staff members, known internally as ‘Astronauts’, about the latest layoffs. Here are the words of Cameron Winklevoss:
“We had hoped to avoid further reductions after this summer, but the continued adverse macroeconomic conditions and unprecedented fraud perpetuated by bad actors in our industry have left us no choice but to reconsider our outlook and further reduce staffing.”
cryptocoin.com As we noted, Gemini and Genesis teamed up in February 2021 to present Gemini Earn, a high-yield cryptocurrency lending product, as proof of the exchange’s tight ties to Genesis. Earlier this month, the United States Securities and Exchange Commission filed suit against the companies, alleging that they were selling unregistered securities to market participants through the Gemini Earn platform.
Layoffs in a growing industry
According to reports, clients of the benefits program were recognized as Genesis’ largest unsecured creditor, with claims totaling more than $765 million in bankruptcy filings. On January 20, Genesis filed its petition for protection under Chapter 11.
Over the past few weeks, a number of leading cryptocurrency companies such as Coinbase, Crypto.com, Blockchain.com, and ConsenSys have reduced their workforces in response to the current crypto winter. Gemini laid off more of its employees in July, after previously laying off 10% of its workforce in June. According to the latest information, Gemini’s headcount has dropped from 1,100 at the beginning of 2022 to 650 to 700 by the end of 2022.
Gemini’s legal battles
Winklevoss has been particularly aggressive in calling out DCG’s CEO, Barry Silbert, whose trading arm Genesis officially went bankrupt last week. Winklevoss alleges that Silbert and the two firms misrepresented their finances to Gemini in the Earn program, whose users’ funds are now locked in Genesis.
Sam Bankman-Fried, the former boss of FTX, was widely indicted and indicted in the same way after his stock market crashed in July in connection with the fraud. The Securities and Exchange Commission (SEC) has filed charges against him for defrauding clients by pouring user funds to trading desk Alameda Research, which he claims is innocent.
Yet Gemini and Genesis are now embroiled in their own troubles with the SEC, which claims to offer unregistered securities to the retail investing public through Gemini Earn. Nexo, a rival crypto lending platform, has stopped serving US clients after numerous challenges from regulators along the same lines.
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