Tyler Winklevoss and Cameron Winklevoss (LR), co-founders of Gemini crypto exchange, on stage at Bitcoin Convention 2021 in Miami, Florida.
Joe Riddle | Getty Images
Crypto exchange Gemini will cut staff 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 founded by twins Cameron and Tyler Winklevoss and, unlike many of its peers, is subject to New York banking regulation.
According to data from PitchBook, Gemini had 1,000 employees as of November 2022, suggesting that about 100 people have lost their positions. TechCrunch reported that Gemini previously cut 7% of its staff in July 2022 after 10% of its staff a month earlier.
Other crypto firms like Crypto.com, CoinbaseKraken and Genesis have liquidated positions since November 11, the day Sam Bankman-Fried’s crypto exchange FTX filed for bankruptcy. In early January, Coinbase cut 20% of its workforce in a second major round of job cuts to preserve cash during the crypto market downturn.
“We had hoped to avoid further reductions beyond this summer, however persistent negative macroeconomic conditions and unprecedented fraud perpetuated by bad actors in our industry have left us with no choice but to revise our forecast and cut staff further,” wrote Cameron Winklevoss. in an internal message obtained by The Information.
Gemini has experienced a battle for client funds in recent weeks. The exchange also faces a legal battle with the Securities and Exchange Commission over the alleged unregistered offering and sale of securities in connection with a partnership with Barry Silbert’s bankrupt company Genesis.
Gemini has been embroiled in an intense feud with Silbert’s Genesis Trading, a crypto lending firm that has been delivering high returns to Gemini clients through Gemini’s high-yielding lending product known as Gemini Earn.
The relationship soured when FTX filed for bankruptcy. Soon after, Genesis froze loans and repayments, costing Gemini customers about $900 million. The chain of failures also prompted 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 of them joined in a class action against the exchange.
Genesis filed for bankruptcy protection on January 19. The filing lists the top 50 unsecured lenders, with Gemini topping the list with $765.9 million — more than $300 million more than the next lender.