• Gemini, a crypto exchange company, has reportedly cut 10% of its global staff in its third round of layoffs in the past 8 months.
• The company has been facing pressure following its engagement with the now-bankrupted crypto lender firm Genesis.
• US Securities and Exchange Commission (SEC) has charged Gemini over the alleged unregistered offer and sale of securities to retail investors.
Gemini, the crypto exchange company founded by twins Cameron and Tyler Winklevoss in 2005, has gone through a tough few months. The firm has been facing pressure following its engagement with the now-bankrupted crypto lender firm Genesis. To make matters worse, the US Securities and Exchange Commission (SEC) has charged Gemini over the alleged unregistered offer and sale of securities to retail investors.
The latest news to add to the company’s woes is the announcement of its third round of layoffs in the past eight months. According to a recent report published by The Information, Gemini has cut down another 10% of its global staff. This latest headcount reduction follows the company’s previous staff cutdown which occurred last June following extreme market conditions. Weeks later, a report claimed that the company laid off an additional 68 employees, or about 7% of its workforce.
In an internal message disclosed by The Information, Gemini co-founder Cameron Winklevoss wrote: (…) 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.
Gemini is a New York-based cryptocurrency exchange company backed by $423 million funding and provides crypto-related services, including providing a crypto wallet for storing digital assets. Despite the ongoing relief rally in the crypto market, the company’s situation has not improved and it has had to resort to a third round of layoffs in order to stay afloat.
The situation is a grim reminder of how difficult it can be to survive in the volatile crypto market. This news comes at a time when the industry has been facing increased scrutiny from regulators and governments around the world. It remains to be seen how Gemini will cope with the current situation and whether it will be able to weather the storm and come out stronger on the other side.