Despite ongoing bailout rallies in the crypto market, the negative news seems to be inexhaustible. The latest to hit the headlines today is Gemini, as the crypto exchange reportedly cut another 10% of its global staff, according to a recent report published by . information Quote the internal message.
This latest layoff is the crypto exchange’s third layoff in the past eight months. The last job cuts were made in June last year in response to extreme market conditions. The company laid off his tenth of its employees. A few weeks later, the company reportedly laid off another 68 employees, or about 7% of its workforce.
In an internal message published today by The Information, Gemini co-founder Cameron Winklevoss wrote:
(…) It was our hope to avoid further cuts after this summer. However, persistently negative macroeconomic conditions and unprecedented fraudulent activity by bad actors in the industry forced us to revise our outlook and further reduce headcount.
Gemini is a New York-based cryptocurrency exchange company founded by twins Cameron and Tyler. Winklevoss The company is backed by $423 million in funding and offers crypto-related services, including offering crypto wallets to store digital assets.
Tough Moon in Gemini
Over the past few months, Gemini has faced pressure following a deal with now-bankrupt cryptocurrency lender Genesis. A few days ago, the U.S. Securities and Exchange Commission (SEC) charged gemini Regarding unregistered offers and alleged sales of securities to individual investors.
In 2020, Gemini and Genesis teamed up to launch a loan program called Gemini Earn. The program allowed Gemini users to lend their digital assets to Genesis to earn interest. Gemini Earn has raised billions of dollars worth of crypto assets from hundreds of thousands of investors, according to the SEC.
of SEC fee The program is classified as an “offering and sale of securities,” which should have been registered with US regulators. Additionally, Genesis filed for Chapter 11 bankruptcy protection last week and was unable to repay loan funds for Gemini Earn users. According to Genesis’ bankruptcy filing, the company now owes Gemini a total of $765.9 million, making Genesis its largest creditor.
The Exodus series continues
Gemini is not alone in laying off staff amid the crypto market’s downtrend. On January 10, Coinbase Global Inc. let go About 1000 employees, or about 20% of the workforce, will be laid off, making it the company’s third layoff.
Three days later, the popular cryptocurrency exchange Crypto.com also announced They said they were laying off 20% of their workforce. According to Crypto.com co-founder and CEO Kris Marszalek, part of the company’s decision to cut staff includes prudent financial management and positioning the company for long-term success.
Crypto companies continue to announce layoffs, but the crypto market ignores the negative news. Cryptocurrency market capitalization recently revisited the $1 trillion benchmark for the first time in months.
Featured image from BlockchainReporter, chart from TradingView.