According to an internal memo that was accessed by media outlets, the cryptocurrency exchange Gemini is planning to lay off 10% of its workforce. This comes after Gemini’s customers being affected by the bankruptcy of Genesis Capital due to the collapse of FTX.
At this point, Gemini has implemented at least the third round of layoffs in the last eight months. On Monday, Gemini President Cameron Winklevoss sent a message on Slack informing staff members, who are referred to internally as “Astronauts,” of the most recent round of layoffs.
Gemini and Genesis teamed together in February 2021 to offer Gemini Earn, a high-yielding cryptocurrency lending product, as evidence of the exchange’s tight ties to the ailing Genesis. It wasn’t until the beginning of this month that the United States Securities and Exchange Commission filed a lawsuit against the companies, alleging that they had sold unregistered securities to market participants through the platform Gemini Earn.
Cameron Winklevoss was quoted as saying:
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.
This is a developing story and is being frequently updated.
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