Crypto exchange Gemini lays off 10% of its workforce

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

Joe Raedle | Getty Images

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

It’s 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 subject to New York’s banking regulation.

As of November 2022, Gemini had 1,000 employees, according to PitchBook data, suggesting about 100 people lost their jobs. TechCrunch reported that Gemini had previously cut its workforce by 7% in July 2022, following a 10% headcount a month earlier.

Other crypto companies such as Crypto.com, Coin baseKraken and Genesis have been eliminating positions since November 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 cash during the crypto market’s downturn.

“We hoped to avoid further cuts beyond this summer, but the continued negative macroeconomic conditions and the unprecedented fraud perpetuated by adversaries in our industry leave us with no choice but to revise our outlook and further reduce headcount” wrote Cameron Winklevoss. in an internal message obtained by The Information.

Gemini has been fighting a battle over client money for the past few weeks. The exchange is also facing a legal battle with the Securities and Exchange Commission over an alleged unregistered offering and sale of securities related to its partnership with Barry Silbert’s bankrupt company, Genesis.

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

The relationship soured when FTX filed for bankruptcy. Genesis then froze lending and repayments soon after, leaving Gemini clients an estimated $900 million short. The series of failures also forced the Gemini Earn product to quickly follow suit with its own temporary suspension.

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

Genesis filed for bankruptcy protection on January 19. The filing lists the top 50 unsecured creditors, with Gemini topping the list with $765.9 million — more than $300 million more than the next creditor.

Crypto broker Genesis files for Chapter 11 bankruptcy

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