Gemini to file for bankruptcy? Question Arises After Exchange lays off 10% workforce

Gemini, a New-York based centralized cryptocurrency exchange, is planning to lay off 10% of its workforce; the news came into the limelight when The Information, a San Francisco-based media outlet, reported.

Although the crypto exchange did not comment on the viral information, the media outlet which reported the news confirmed that the information came from an internal source of the company.

The recent failure of FTX, the world’s third-largest crypto exchange, has stirred the crypto market. Following the collapse, several renowned companies like BlockFi, Genesis and more sought bankruptcy protection.

Gemini exchange was founded by twin brothers Cameron and Tyler Winklevoss in early 2014, although the exchange went live in October 2015.

The twin brothers were the classmates of the Facebook creator and have sued and accused Mark Zuckerberg of stealing their idea to create the popular social network Facebook. Cameron and Winklevoss won the lawsuit. They received a $65 million settlement from the lawsuit.

The centralized crypto exchange operates its business in over 70 countries globally and is available in all 50 states of the United States. Gemini offers the trading of over 120 cryptocurrencies and more than 21 crypto-to-crypto trading pairs.

As per the bankruptcy filing of Genesis, it owes $765.9 million to Gemini, its largest creditor. The exchange is among a few centralized crypto exchanges offering insurance coverage against mostly all sorts of losses.

Per the reports on January 12, SEC charged the crypto lender Genesis Global Capital and exchange firm Gemini for offering unregistered securities using the “Earn” program of the crypto exchange.

Winklevoss picked up the same and took to Twitter, stating the charges against the Earn program were brought by the regulator as wrong and saying it as politically optimized points.

While referring to the discussion of crypto exchange with the regulator regarding the program for more than 17 months, the recent action proved to be “counterproductive” to the efforts.

Investments and Acquisition of Gemini Crypto Exchange

As per data from Crunchbase, the crypto exchange has over 9 major investments in different crypto sectors, including RECUR, LayerZero Labs, The TIE, Kaleidoco, Empiric Network, Supermojo and earnJARVIS.

In three years and two months, the crypto exchange acquired six companies: ShardX, Omniex, Blockchange, Blockrize, Nifty Gateway, and Guesser.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing