New York-based cryptocurrency exchange Gemini is dropping 10% of its workforce amid the ongoing bear market that has seen around $2 trillion wiped out from the crypto market.
This is the third round of layoffs at the crypto exchange in the last eight months, the Information reported on Monday, citing an internal message from Gemini co-founder and CEO Cameron Winklevoss. He would have said:
“We had hoped to avoid further cuts after this summer, however, continued negative macroeconomic conditions and unprecedented fraud perpetuated by bad actors in our industry have left us with no choice but to revise our outlook and further reduce headcount. .”
Data from PitchBook shows that Gemini had 1,000 employees in November 2022, implying that around 100 people lost their jobs. TechCrunch reported that Gemini previously reduced its workforce by 7% in July 2022, following a workforce of 10% a month earlier.
The latest layoff comes amid mounting pressure on Gemini over a high-profile dispute involving crypto firm Genesis, over the exchange’s Trust Earn program, which offered high-interest accounts through a partnership with the crypto lender.
As noted, Genesis filed for chapter 11 bankruptcy protection last week after weeks of speculation surrounding the health of the crypto lender. Bankruptcy filings show Genesis owes $3.5 billion to its top 50 creditors, including $900 million to Gemini Eearn users.
It should be noted that Cameron engaged in a public spat with Barry Silbert, CEO of Digital Currency Group, owner of Genesis. Earlier this month, he wrote an open letter to the DCG board, asking for the Silvert kidnapping. He also claimed that DCG deceived more than 340,000 Gemini and Earn users by falsely claiming that Genesis was creditworthy.
Cameron welcomed Genesis’ decision to file for bankruptcy. “This is a critical step for us to get your assets back,” he said in a Twitter thread, while also threatening to take legal action against Barry Silbert and Digital Currency Group unless that they make “a fair offer” to the creditors.
The Securities and Exchange Commission has deposit a complaint against Genesis Global and Gemini Trust regarding the unregistered sale of cryptocurrencies. The commission said it was seeking civil penalties, restitution of ill-gotten gains plus prejudgment interest and a permanent injunction.
Meanwhile, almost every major crypto exchange has also announced layoffs over the past two months. As noted, Coinbase announcement its third round of layoffs earlier this month, reducing its workforce by a total of 950 employees, or 20% of its workforce.