US-based crypto exchange Gemini said that it will lay off 10 per cent of its workforce, citing "bad actors" in the crypto industry, the media reported. It's at least the third round of cuts at Gemini in the past eight months. In a message on Slack on Monday, Gemini President Cameron Winklevoss informed staff of the latest layoffs, reports The Information.
"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," Winklevoss was quoted as saying. In July last year, Gemini laid off more employees in the second round of layoffs.
According to TechCrunch, the company laid off 7 per cent, or 68 employees, in the second round. Moreover, the exchange is also facing a legal fight with the US Securities and Exchange Commission (SEC) over an alleged unregistered offering and sale of securities in connection with its partnership with the cryptocurrency broker Genesis.
Last week, Genesis filed for Chapter 11 bankruptcy following the meltdown of the FTX exchange. According to bankruptcy documents, the company listed over 1,00,000 creditors in a "mega" bankruptcy filing, with aggregate liabilities ranging from $1.2 billion to $11 billion, reports CNBC.
Sign up for Cryptogram, an India-based free weekly newsletter on global crypto markets and Web3 technologies which promise to change our future. Sign up here. You can read our past editions here. Visit Giottus here.