- Gemini has reportedly cut around 10% of its workforce.
- Gemini co-founder Cameron Winklevoss said that “persistent negative macroeconomic conditions and unprecedented fraud perpetuated by bad actors” forced the exchange to “revise its outlook.”
- Gemini fired 10% of its workforce in June of last year and 7% in July.
- Gemini Earn users have yet to receive over $900 million stuck with now-bankrupt Genesis.
Centralized crypto exchange Gemini has resorted to another round of layoffs as its beef with former lending partner Genesis continues.
According to The Information, Gemini has cut around 10% of its workforce. Gemini co-founder Cameron Winklevoss told the company’s employees that it was forced to lay some of them off due to “unprecedented fraud perpetuated by bad actors.”
“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,” said Winklevoss in an internal message. This is the third round of layoffs at Gemini since last summer. In June, the exchange also cut 10% of its workforce; in July, it fired another 7%.
Other crypto companies have also been aggressively cutting jobs. Coinbase (NASDAQ:COIN) has carried out three job cuts in the last year, firing thousands of employees. ConsenSys, Crypto.com, and other companies have also laid off employees.
Gemini’s Fight Against Genesis and DCG
Gemini has been in a public fight against Genesis, its parent company Digital Currency Group (DCG), and its founder and CEO, Barry Silbert, since early January.
In particular, Gemini’s Cameron Winklevoss has said that Genesis owes Gemini Earn customers over $900 million and has been reluctant to engage in constructive dialogue. On top of that, Winklevoss has accused Silbert of accounting fraud and asked for his immediate removal from DCG.
Since the start of the beef in January, Genesis, which owes over $3.5 billion to its creditors, has gone bankrupt, and Gemini shut down its Earn program. The U.S. Securities and Exchange Commission (SEC) has also charged both companies with selling unregistered securities.
Gemini Earn users have yet to receive their funds stuck with Genesis.
On the Flipside
- It’s unclear what the specific number of employees affected by the layoffs is.
- The layoffs haven’t been made official yet.
Why You Should Care
Gemini is one of the last-standing big crypto players. Its decision to carry out another round of layoffs indicates the challenges the broader crypto industry is currently facing.
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