Gemini, owned by the Winklevoss twins is bleeding employees left and right due to its exposure to the now-bankrupt crypto lending platform Genesis.
The exchange is laying off 10% of its workforce, citing reasons of ‘bad actors’ in the crypto industry. On top of that, this will be the third round of layoffs at Gemini within the last eight months.
According to data accumulated by PitchBook and TechCrunch, the company had trimmed 10% of its staff in June, followed by another 7% being laid off a month later.
Gemini has been struggling over customer funds lately due to its long exposure to bankrupt crypto lender Genesis. The company has also been in trouble with the SEC due to its association with Genesis in connection with an alleged unregistered offering and sale of securities.
The lending platform had previously generated high returns for Gemini clients through the high-yielding lending product Gemini Earn. however, once FTX filed for bankruptcy, Genesis abruptly froze lending. Customers were left with a shortfall of $900 million, forcing Gemini Earn to also freeze its accounts.
The souring of relationships between the two crypto companies led to Cameron Winklevoss penning a harsh open letter addressing Genesis CEO Barry Silbert and accusing him of acting in bad faith.
Employees are in turn losing their jobs due to the bad actors. Coinbase, Crypto.com, Huobi, and Kraken are among the list of crypto exchanges that have also taken this route while FTX has crashed.