A spokeswoman for Gemini told CNBC on Monday that the company will downsize its workforce by 10%. Gemini joins a lengthy list of crypto firms that have announced or intensified staff reductions in the months following FTX’s bankruptcy filing in November 2022. It is at least the third round of layoffs in less than a year for the Cameron and Tyler Winklevoss-founded exchange. Gemini, a cryptocurrency exchange, reduces its employees by 10% in its latest layoffs.
It is at least the third round of layoffs in less than a year for Gemini, co-founded by Cameron and Tyler Winklevoss. Unlike many competitors, it is subject to New York banking supervision.
According to PitchBook data, Gemini had 1,000 workers as of November 2022, indicating that approximately 100 lost their jobs. TechCrunch reported that Gemini reduced its workforce by 7% in July 2022, following a 10% reduction one month prior.
The Start of Reducing Employees
Since November 11, when Sam Bankman-cryptocurrency Fried’s exchange FTX filed for bankruptcy, other crypto businesses, including Crypto.com, Coinbase, Kraken, and Genesis, have terminated jobs. Coinbase reduced its personnel by 20% in early January to preserve funds during a second round of significant layoffs in the crypto market decline.
Cameron Winklevoss wrote in an internal message obtained by The Information. “We had hoped to avoid further reductions after this summer. However, persistently negative macroeconomic conditions and unprecedented fraud perpetrated by bad actors in our industry have forced us to revise our outlook and further reduce headcount.”
Gemini has fought for consumer monies over the past few weeks. With its collaboration with Barry Silbert’s bankrupt company, Genesis, the exchange faces a legal battle with the Securities and Exchange Commission over an alleged unregistered offering and sale of securities.
Gemini is mired in a heated dispute with Silbert’s Genesis Trading. A crypto lending firm that made substantial profits for Gemini consumers through Gemini Earn, its high-yield loan product.
The friendship deteriorated after FTX declared bankruptcy. Genesis suspended loans and redemptions shortly after, leaving Gemini customers short an estimated $900 million. The string of failures compelled the Gemini Earn product to suspend operations as well immediately.
In the months following the discontinuation of the Earn program, Gemini’s 340,000 consumers have been increasingly unhappy. A group of plaintiffs has filed a class action lawsuit against the exchange.
On January 19, Genesis filed for bankruptcy protection. The filing includes a list of the 50 largest unsecured creditors, with Gemini topping the list with $765,9 million – more than $300 million more than the next largest creditor.
