Gemini exchange launches third wave of staff cuts

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Trading platform Gemini, hit by the bankruptcy of crypto lender Genesis, has reported a third major wave of layoffs. The exchange will reduce 10% state.

Since last summer trading platformGemini began to optimize the number of employees against the backdrop of high volatility in the crypto market. In June, the exchange laid off 10% of its staff, and in July reduced its number by 7%. As follows from the address of Gemini co-founder Cameron Winklevoss to the team, the management of the exchange hoped to avoid such actions, but the decision had to be reconsidered. The management sees the reason in the ongoing difficult macroeconomic conditions and unprecedented fraudulent activities committed by participants in the cryptocurrency industry.

The exchange was hit hard by a crypto lenderGenesis Capital, with which it collaborated under the Gemini Earn program, which offered up to 8% of the deposit amount. In mid-November, Genesis stopped withdrawals, freezing about $900 million owed to 340,000 Gemini customers. Last week, on January 20, Genesis filed for bankruptcy.

In addition to this on Gemini and Genesisfiled a lawsuit by the US Securities and Exchange Commission (SEC), alleging that the Gemini Earn program violates securities laws. Previously, the regulator filed similar claims against the lending platform BlockFi, forcing it to pay a fine of about $100 million.

Recently, Bits.media published material about how the situation with Gemini and the Digital Currency Group (DGG) company could develop and what options exist for solving the problems that have arisen.