According to an article by CNBC, another 10% of Gemini’s personnel will be laid off as part of the third wave of job reductions that the regulated cryptocurrency exchange has implemented in less than a year.
The layoff, according to Cameron Winklevoss, was caused by both macroeconomic pressure and “unprecedented fraud” in the cryptocurrency sector.
The Information reported on Monday that Winklevoss had been forced to cut staff and that he had “no choice” but to do so in an internal message. The letter states:
“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.”
According to data from PitchBook, Gemini had 1,000 workers as of November 2022, which means 100 people could have lost their jobs. According to reports, Gemini reduced its workforce by 7% in July 2022 after reducing it by 10% one month earlier.
Since Nov. 11, after SBF’s cryptocurrency exchange FTX filed for bankruptcy, several cryptocurrency businesses like Crypto.com, Coinbase, Kraken, and Genesis have cut staff. Coinbase downsized 20% of its personnel in early January in an effort to maintain liquidity during the slump in the cryptocurrency market.
Gemini in Trouble
Meanwhile, the SEC is causing problems for Gemini and Genesis. Both platforms were accused of marketing unregistered securities through the exchange’s “Earn” program on January 12 by the United States Securities and Exchange Commission.
Consequently, Tyler Winklevoss, co-founder of the cryptocurrency exchange Gemini, blasted the regulatory body for charging the exchange with offering unregistered securities and called the charges “super lame” and “a manufactured parking ticket.”
In a noteworthy update on the Earn program, Winklevoss announced that the business plans to take legal action against Digital Capital Group (DCG) and its CEO, Barry Silbert, for the $900 million owing to Gemini clients.