NewsletterBreaking: Gemini Exchange Axes 10% Staff, Is Bankruptcy Filing Next?
According to an internal memo that was accessed by media outlets, the cryptocurrency exchange Gemini is planning to lay off 10% of its workforce. This comes after Gemini’s customers were affected by the bankruptcy of Genesis Capital due to the collapse of the FTX empire, back in December of 2022.
Gemini Cuts 10% Workforce
At this point, Gemini has implemented at least three rounds of layoff in the last eight months. On Monday, Gemini President Cameron Winklevoss sent a message on Slack informing staff members, who are referred to internally as “Astronauts,” of the most recent round of layoffs.
Cameron Winklevoss was quoted as saying:
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.
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Gemini and Genesis teamed together in February 2021 to offer Gemini Earn, a high-yielding cryptocurrency lending product, as evidence of the exchange’s tight ties to the ailing Genesis. It wasn’t until the beginning of this month that the United States Securities and Exchange Commission filed a lawsuit against the companies, alleging that they had sold unregistered securities to market participants through the platform Gemini Earn.
Growing Industry Layoffs
According to reports, customers of the Earn program were recognized in bankruptcy documents as Genesis’ top unsecured creditor with claims totaling over $765 million. On January 20th, Genesis submitted their petition for protection under Chapter 11.
During the past several weeks, a number of prominent cryptocurrency companies, such as Coinbase, Crypto.com, Blockchain.com, and ConsenSys, have reduced their workforces in response to the current crypto winter. Gemini had earlier let off more employees in July, after having previously cut 10% of its workforce in June. As per recent information, the headcount of Gemini dropped from 1,100 at the beginning of 2022 to somewhere between 650 and 700 persons by the end of 2022.
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