In at least its third round of layoffs since June, the crypto exchange Gemini is laying off 10% of its remaining staff. The exchange has been rocked by the bankruptcy of Genesis Global Capital.
The layoffs were first reported by The Information, which obtained an internal message written by Gemini president Cameron Winklevoss, co-founder of the exchange with his twin brother, Tyler.
The bankruptcy of crypto lender Genesis Global Capital has convulsed Gemini, which has left the exchange unable to pay out funds to its Earn account holders. Cameron and Tyler Winklevoss have been at war via Twitter with Digital Currency Group, the parent company of Genesis, over $900 million owed to Earn customers.
“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,” wrote Cameron Winklevoss, the president and co-founder of Gemini, in the internal message.
Gemini employed about 1,100 people at the start of 2022, but successive rounds of layoffs have reduced headcount to between 650 and 700 at the end of last year, according to The Information. Gemini cut 10% of its staff in June, followed by more layoffs in July, according to TechCrunch.
Job losses, bankruptcies and even indictments and arrests for fraud have jolted the crypto industry since its high water mark during the pandemic. Large crypto companies, including Coinbase, Crypto.com, Blockchain.com and ConsenSys, have announced layoffs, as what was called the crypto winter stretches on with no end in view. CoinDesk estimates nearly 27,000 jobs have been lost across the industry since April of last year.
Peter Page is the Contributions Editor at Grit Daily. Formerly at Entrepreneur.com, he began his journalism career as a newspaper reporter long before print journalism had even heard of the internet, much less realized it would demolish the industry. The years he worked a police reporter are a big influence on his world view to this day. Page has some degree of expertise in environmental policy, the energy economy, ecosystem dynamics, the anthropology of urban gangs, the workings of civil and criminal courts, politics, the machinations of government, and the art of crystallizing thought in writing.