Despite the ongoing relief bounce that is taking place in the cryptocurrency market, negative news will never stop. The cryptocurrency exchange company Gemini is the most recent business to make its way into today’s news headlines. According to a recent claim published by The Information, which cited an internal letter, Gemini is said to have laid off another 10% of its workforce around the world.
This most recent round of layoffs marks the cryptocurrency exchange’s third round of reductions in headcount within the past eight months. The last decline in staffing took place in June of last year in response to harsh market conditions. The business had to lay off 10 percent of its workforce. Several weeks later, a report stated that the corporation terminated the employment of an additional 68 workers, which corresponds to around 7% of the total staff.
One of the people who started Gemini, Cameron Winklevoss, wrote the following in an internal email that The Information made public today:
“After the summer, it was our intention to refrain from making any additional cuts.” However, as a result of persistently poor macroeconomic conditions and unparalleled fraud perpetrated by unscrupulous people in our sector, we have been left with no choice but to adjust our perspective and further cut staff.
Gemini has been under pressure for the past few months because it worked with Genesis, a crypto lender company that has since gone out of business. A few days ago, Gemini was charged by the U.S. (SEC) with selling securities to small investors without being registered.
In 2020, Gemini and Genesis worked together to start a loan program called Gemini Earn. Users of Gemini could lend digital assets to Genesis and earn interest through the program. According to the SEC, Gemini Earn received crypto assets worth billions of dollars from tens of thousands of investors.
The SEC says that the program was an “offer and sale of securities” that should have been registered with a U.S. government agency. Also, Genesis filed for Chapter 11 bankruptcy protection last week because it couldn’t pay back the money loaned to it by Gemini Earn users. According to its bankruptcy filing, Genesis owes Gemini a total of $765,9 million. This makes Genesis its largest creditor.
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