Since last summer, the Gemini trading platform began to optimize the number of employees against the backdrop of high volatility in the crypto market. In June, the exchange fired 10% of its staff, and in July reduced its number by 7%. As follows from the appeal 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 continuing difficult macroeconomic conditions and unprecedented fraudulent activities committed by participants in the cryptocurrency industry.
The exchange was hit hard by crypto lender Genesis Capital, with whom it collaborated on 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, January 20, Genesis filed for bankruptcy.
In addition, Gemini and Genesis have been sued by the U.S. Securities and Exchange Commission (SEC) alleging that the Gemini Earn program violates securities laws. Earlier, the regulator made similar claims against the BlockFi lending platform, forcing it to pay a fine of about $100 million.
Recently, Bits.media published an article about how the situation with Gemini and Digital Currency Group (DGG) can develop and what options exist for solving the problems that have arisen.