• New York-based cryptocurrency exchange Gemini has laid off 10% of its workforce due to the ongoing bear market and fraud in the industry.
• This marks the third round of layoffs at Gemini in the past eight months, with the first two rounds in July and August of 2022.
• The latest layoffs come amid mounting pressure on the exchange due to a high-profile dispute with crypto company Genesis.
Cryptocurrency exchange Gemini has recently announced that it will be laying off 10% of its workforce, citing the ongoing bear market in the crypto market and fraud perpetuated by bad actors as the reasons behind the decision. This marks the third round of layoffs at the exchange in the past eight months, with the first two rounds taking place in July and August of 2022.
The bear market has seen around $2 trillion wiped out of the crypto market, leading to a difficult situation for Gemini and other exchanges. According to PitchBook, Gemini had 1,000 employees as of November 2022, implying that around 100 people will now lose their jobs. This news comes amid mounting pressure on the exchange due to a high-profile dispute with crypto company Genesis.
The dispute revolves around Gemini’s Trust Earn program, which offered high-interest accounts thanks to a partnership with the crypto lender. However, Genesis recently filed for Chapter 11 bankruptcy protection, with filings showing that it owes $3.5 billion to its top 50 creditors, including $900 million to Gemini Earn users. Cameron Winklevoss, co-founder and CEO of Gemini, has engaged in a public spat with Barry Silbert, CEO of Digital Currency Group, which owns Genesis.
This latest round of layoffs is a difficult but necessary decision for Gemini in order to stay afloat during these tough times. While the news comes as a shock to many in the crypto industry, the exchange has made it clear that it is committed to providing the best service to its customers and will continue to take whatever measures necessary to ensure its success.