Gemini lays off 10% of staff amid Genesis troubles

The cryptocurrency exchange Gemini has laid off 10% of its staff amid the bankruptcy of crypto-lending platform Genesis Global Capital. The Information reports, citing an internal memo.

The layoffs mark the third round of job cuts the exchange has carried out in the past eight months.

According to Gemini co-founder Cameron Winklevoss, the decision to trim staff was driven by weak macroeconomic conditions and “unprecedented fraud” in the crypto industry.

An additional factor was the halt of the Gemini Earn yield program by Digital Currency Group, the parent company of the bankrupt Genesis Global Capital. The latter’s liabilities to the exchange’s clients stand at $900 million.

In a letter to customers, Gemini said that the bankruptcy process of Genesis Global Capital would be a “decisive step on the path to recovering user assets”.

The exchange declined to comment further on the situation.

On January 20, Genesis Global Capital filed bankruptcy filing.

The filing lists more than 100,000 creditors, with assets and liabilities ranging from $1 billion to $10 billion.

Last week a reduction of around 11% of staff was confirmed by software developer ConsenSys.

Microsoft also said it planned to lay off 10,000 employees by March 2023.

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