Crypto exchange Gemini lays off 10% of its workforce in its latest round of cuts

Crypto exchange Gemini lays off 10% of its workforce in its latest round of cuts

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

Joe Raedle | Getty Images

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



This is at least 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, is matter New York banking regulations.

Gemini had 1,000 employees in November 2022, according to data from PitchBook, suggesting around 100 people lost their jobs. TechCrunch reported that Gemini previously reduced its workforce by 7% in July 2022, after a workforce of 10% a month earlier.

Other crypto companies like Crypto.com, CoinbaseKraken and Genesis have eliminated positions since Nov. 11, the day the Sam Bankman-Fried crypto exchange FTX filed for bankruptcy. In early January, Coinbase cut 20% of its workforce in a second major round of job cuts in an effort to preserve liquidity during the crypto market downturn.

“We had hoped to avoid further cuts after this summer, however, continued 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. “, wrote Cameron Winklevoss. in an internal message obtained by information.



Gemini has endured a battle over client funds in recent weeks. The exchange is also facing a legal battle with the Securities and Exchange Commission over an alleged unregistered offering and sale of securities under its partnership with Barry Silbert’s bankrupt company, Genesis.

Gemini has been involved in an intense spat with Silbert’s Genesis Trading, a crypto lending company that has generated rich returns for Gemini clients through Gemini’s high-yield lending product, known as Gemini Earn.

The relationship soured when FTX filed for bankruptcy. Genesis then froze loans and repayments soon after, leaving Gemini customers short of about $900 million. The chess channel also forced product Gemini Earn to quickly follow suit with its own temporary suspension.

In the months since the Earn product was discontinued, Gemini’s 340,000 customers are growing increasingly frustrated. Some have gathered in a class action against the exchange.

Genesis filed for bankruptcy 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 largest creditor.