Crypto Exchange Gemini Cutting Another 10% of Staff: Report
Gemini has been swept up in the problems of crypto lender Genesis Global Capital, with which it partnered on an interest-earning product.
In at least its third round of layoffs since June, crypto exchange Gemini is shedding another 10% of its staff, according to an internal message viewed by The Information.
Gemini has been swept up in the bankruptcy of crypto lender Genesis Global Capital and has been unable to pay out funds to its Earn account holders. Gemini's founders, Cameron and Tyler Winklevoss, have engaged in a Twitter war with Digital Currency Group, the parent company of Genesis, over the $900 million owed to Earn customers. (DCG is also the parent company of CoinDesk.)
“It was our hope to avoid further reductions after this summer, however, persistent negative macroeconomic conditions and unprecedented fraud perpetuated by bad actors in our industry have left us with no other choice but to revise our outlook and further reduce headcount,” wrote Cameron Winklevoss, the president and co-founder of Gemini, in the internal message.
Gemini declined to comment on this story.
Gemini had previously cut 10% of its staff in June, followed by more layoffs in July, according to TechCrunch. Gemini’s headcount was down overall from 1,100 at the start of 2022 to between 650 and 700 people near the end of the year, according to The Information.
Many large crypto companies, including Coinbase, Crypto.com, Blockchain.com and ConsenSys, have cut staff in recent weeks amid the ongoing crypto winter. CoinDesk estimates nearly 27,000 jobs have been lost across the industry since April of last year.
UPDATE (Jan. 23, 17:56 UTC): Adds additional context and background on other crypto layoffs.
UPDATE (Jan. 23, 18:35 UTC): Adds Gemini declining to comment.
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