## Crypto exchange Gemini in line for the next round of downsizing

In yet another blow to the industry, crypto exchange, Gemini plans to lay off another 10% of its staff to cut back on costs.

The [report](https://www.theinformation.com/articles/gemini-is-laying-off-10-of-staff-marking-latest-blow-for-winklevoss-crypto-startup?utm_content=article_push&utm_medium=organic&utm_campaign=AB_post&utm_term=AB_post) was provided by The Information after it intercepted an internal communication plan meant for Gemini's employees. The message referred to the crypto industry's crisis, as well as some "bad actors" in the industry that caused Gemini to make this decision.

This is the third round of downsizing that Gemini is going through within the past six months, as the crypto exchange is experiencing tough times.

The president of Gemini, Cameron Winklevoss, said the company had hoped to avoid further staff cuts, but that the "persistent negative macroeconomic conditions and unprecedented fraud perpetuated by bad actors in our industry" left it with no choice.

Of course, the party in question was none other than Genesis, and its parent company Digital Currency Group. Due to Genesis' own financial issues and bankruptcy, it has failed to meet obligations to Gemini and the crypto exchange platform's special project, Earn.

Earn is an interest-paying financial instrument that Gemini offers. The finances provided for the lending were covered by the Genesis group. However, due to bankruptcy, it was unable to pay the remainder of the due costs, which – [according to Gemini ](/news/article/winklevoss-claims-genesis-owes-investors)– amounted to around $900m.

There was a back-and-forth between the two entities on social media as well, with [Twitter](https://twitter.com/gemini/status/1592873279232278532?lang=ens) being the main playground for the heated exchange.

## Increasing trend of lay-offs in the crypto industry

Gemini isn't the first crypto exchange or crypto-based company to lay off its employees in the past year. The increasing number of bankruptcies, failures, and downright fraud committed by multiple crypto entities has contributed to a huge crash in the market.

After all these companies inherit losses and find it difficult to cover their expenses, the only stakeholder with a target on its back tends to be the employee.

The mismanagement of funds by upper-level executives is becoming more and more detrimental to not just company employees, but the crypto industry itself.

We wait to see how the market revives – if it does at all – and how much trust skilled workers will have in these crypto entities once again.


red image of employees carrying boxes out of office

Crypto Exchange Gemini Cuts Staff Again 

US financial watchdog the SEC (Securities and Exchange Commission) has filed charges against crypto lending firms Gemini and Genesis.

On 12 January, SEC sued the firms over their crypto lending product, Earn, for allegedly breaching investor protection laws.

## The Gemini SEC lawsuit

The [Gemini](https://www.gemini.com/) SEC civil lawsuit has been filed in the Federal Court of Manhattan. As per the SEC, both companies did not register their product before offering them to individual investors. The regulator claims that the Earn program has been used to sell unregistered securities. 

The crypto lending program allowed the exchange’s customers to lend their assets to [Genesis](https://genesistrading.com/) to earn up to 8% interest. The crypto exchange also profited by charging a fee of around 4.29% through this program.

Both these partner firms are under scrutiny after Genesis paused withdrawals unexpectedly in November. Interestingly, it happened right after the FTX exchange crashed. As per the SEC, at that time, the cryptocurrency lending program had more than [$900 million worth of crypto assets](/news/article/genesis-brokers-owes-gemini) of their customers. With this lawsuit, the commission is looking to recover illegal profits and fines for the offence. 

## Tyler Winklevoss's statement on Gemini SEC charges

Soon after the Gemini SEC lawsuit was filed, Gemini’s co-founder, [Tyler Winklevoss](/news/article/tyler-winklevoss-twitter), issued a statement via [Twitter](https://twitter.com/tyler/status/1613674691507679233). He said, "We look forward to defending ourselves against this manufactured parking ticket...".

He also showed his resolve to continue work to recover customers' assets.

On the other hand, Genesis Global Capital is yet to comment on the issue. 

Since the pause of withdrawals, the lending partner has been seeking ways to recover. However, the Wall Street Journal recently reported that the firm might have to file for [Chapter 11 bankruptcy](https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics). The firm has already laid off more than 30% of its workforce in the last week.

Gemini and Genesis have ties with the [fallen exchange](/news/article/gemini-crypto-exchange-falls-prey), FTX, and have been in losses since its decline.



gemini and Genesis logos over red image of US SEC building

Genesis and Gemini: SEC Takes Action

Barry Silbert, the CEO of Digital Currency Group (DCG), has denied employing “bad faith stall tactics” in a duel pitting DCG against the Gemini Exchange’s Cameron Winklevoss, whose firm is trying to retrieve [$900 million](/news/article/genesis-brokers-owes-gemini) of deposits their clients placed with Genesis.

## Clients unable to access their funds

DCG is currently in the crosshairs of the rest of the crypto industry, and [rumors](https://www.bloomberg.com/news/articles/2023-01-06/barry-silbert-s-list-of-crypto-woes-starts-with-genesis-bankruptcy-angst?sref=ZTdRrSmf) about a looming Genesis [bankruptcy](https://www.reuters.com/technology/us-crypto-broker-genesis-says-it-is-working-avoid-bankruptcy-filing-2022-11-30/) and federal investigations are fueling the allegations. 

The contest with Winklevoss gravitates around allegations regarding a loan Barry Silbert extended to Genesis to the defunct crypto hedge fund Three Arrows Capital (3AC): 3AC owed Genesis [more than $1 billion](https://www.coindesk.com/business/2022/07/18/genesis-global-issued-236b-in-undercollateralized-loans-to-three-arrows-capital/) when it tanked last year. As the two crypto entrepreneurs continue bickering, Gemini’s clients have been unable to access their funds for at least six weeks. 

Genesis and Gemini partnered about two years ago. They launched a high-yield crypto product called Earn, through Gemini, that offered up to 8% ROI on customer deposits. Gemini exchange lent funds from Earn to Genesis, which the latter placed on numerous trading platforms and borrowers. The relationship flourished throughout 2020 and 2021 as the crypto market thrived, but matters went haywire in 2022 when the crypto market dithered, causing the Earn model to fall apart. 

Gemini halted all withdrawals last November at the height of the FTX crisis to the chagrin of more than 340,000 of its retail clients, some of whom are seeking legal redress.   

## Barry Silbert is the public face of DCG

Barry Silbert, the public face of DCG, has never shied away from using Twitter or interviews to opine on the crypto market. The career investment banker is among the pioneer investors in blockchain firms around 2013 and established DCG in 2015; the firm has so far invested in more than 200 crypto startups. 

According to [Forbes magazine](https://www.forbes.com/profile/barry-silbert/?sh=530f2a452950), the Emory University’s Goizueta Business School alumnus had a net worth of $3.2 billion and was the eighth-richest crypto investor in April 2022. 

Apart from Genesis, DCG's lending arm, the $10 billion company has a stake in digital asset manager Grayscale besides owning crypto mining firm Foundry Services, trade publication Coindesk, digital asset platform Luno global, and crypto index provider TradeBlock. Apart from its association with the defunct 3AC, Genesis joins the list of firms suffering from FTX [contagion](/news/article/gemini-crypto-exchange-falls-prey) as its derivative business is said to have had over $175 million locked in an FTX trading account.


red image of stock market with Cameron Winklevoss and Barry Silbert

Barry Silbert Rebuts ‘Bad Faith’ Claims

Cameron Winklevoss, co-founder of crypto exchange Gemini Trust Co with his twin brother, accused CEO of Digital Currency Group Barry Silbert of "bad faith stall tactics" on Monday and demanded that he commit to settling $900 million in disputed client assets by 8 January.

## Winklevoss says Genesis owes more than $900 million

In partnership with DCG's crypto company [Genesis](/news/article/genesis-brokers-owes-gemini), Gemini offers a crypto financing product called Earn. Following the bankruptcy of major cryptocurrency exchange [FTX](/news/article/is-crypto-dead) in November, [they froze customer withdrawals](https://www.reuters.com/technology/crypto-broker-genesis-suspend-redemptions-new-loan-originations-tweet-2022-11-16/). 

Winklevoss stated that Genesis owed about $900 million to around 340,000 Earn investors and that he had been attempting to achieve a "consensual resolution" with Silbert for the previous six weeks. 

"Over the past six weeks, we have done all we can to engage with you in good faith and collaboratively in an attempt to seek a consensual settlement for you to return the $900 million that you owe while also assisting you in the preservation of your business," Winklevoss said in his letter. "However, it is now evident that you have been using deceptive delay tactics. 

## Winkelvoss's open letter to Silbert and his response

"However, it is now evident that you have been participating in bad faith delay tactics," Winklevoss stated in a Twitter https://twitter.com/cameron/status/1609913051427524608?s=20&t=belP_IbOFb4yt9f9xIG4Aw to Silbert. "We are asking you to commit to collaborating to fix this problem by 8 January, 2023," he continued.

The letter should have specified what would happen if an agreement with Silbert was reached by 8 January. Winklevoss responded that DCG owed Genesis $1.675 billion, which Genesis owed to Earn users and other creditors, adding that "this disaster is all of your inventions".

In a [tweet](https://twitter.com/BarrySilbert/status/1609926715454771200), Silbert stated that DCG had not borrowed $1.675 billion from Genesis. In his opinion, DCG has never missed an interest payment to Genesis. 

It has no loans outstanding, adding that on 29 December, DCG delivered a proposal to Genesis and Winklevoss' counsel and has yet to get a response.

Genesis said in a letter to clients on [7 December](https://www.reuters.com/technology/crypto-lender-genesis-tells-clients-it-is-working-preserve-their-assets-2022-12-07/) that it was trying to safeguard client assets and increase liquidity, but that it would take weeks rather than days to develop a plan.


red image oc cameron winklevoss with genesis logo

Winklevoss Claims Genesis Owes Earn Investors

The [FTX collapse](/news/article/ftx-collapse-blockfi-suspend-withdrawals) has left Genesis brokers in heavy debt, another example of the spreading contagion from the exchange collapse. According to a [report](https://www.ft.com/content/32977a99-c1c3-4f34-9ecc-4057217bf974) by newspaper the Financial Times, the crypto broker and the [Digital Currency Group (DCG)](https://dcg.co/) owe around $900 million to the Winklevoss twins’ exchange, Gemini. 

DCG is a venture capital company that owns Grayscale asset manager and [Genesis brokerage](/news/article/genesis-crypto-claim). Last month, its founder, Barry Silbert, addressed the company's shareholders about market turmoil in a letter. It shared that the company owes more than $575 million to the brokerage's lending arm.

The borrowed amount was to be used for new investment opportunities and was due in May 2023. The loan was taken when DCG assumed control of Genesis Trading after the default of [Three Arrows Capital (3AC)](https://www.threearrowscap.com/).

## Gemini seeking to recover its customers’ funds

Genesis brokers and Gemini crypto exchange worked together for a digital asset lending program called Earn. The debts affected its operations, and it halted withdrawals from customers’ accounts. Now, Gemini has set up a creditors committee that will make efforts to retrieve the funds from DCG and its subsidiary, crypto lender.

Currently, a creditor group is in talks with the company about $1.8 billion worth of loans. Another creditor group, accounting for $900 million, is taking advice from the law firm [Proskauer Rose](https://www.proskauer.com/). 

## Genesis brokers may file for bankruptcy

Genesis Global Capital is likely to file for bankruptcy. However, the firm has acquired the services of investment bank Moelis to explore its options. On 16 November, the firm suspended withdrawals from customer accounts. The initiative was taken after the sudden decline of the Sam Bankman-Fried exchange, FTX.

The suspension also triggered an unexpected outage for the [Gemini exchange](/news/article/gemini-crypto-exchange-falls-prey). The overall operations of the crypto exchange are being affected due to the spread of FTX contagion.


Genesis Brokers Owes $900 Million to Gemini

FTX’s [decline](/news/article/ftx-bankrupt-who-to-blame) has rattled the crypto market. Digital asset lending firms and exchanges are at the receiving end and falling like houses of cards. The [Gemini crypto exchange](https://www.gemini.com/) of the Winklevoss twins has also become one of the victims of FTX contagion. 

On 16 November, Gemini's Earn product experienced delays in withdrawals due to an outage. Curiously, the outage occurred just after its partner, [Genesis Global](https://genesis.global/), suspended withdrawals on its platform. Genesis took the step in the wake of the fall of the [Sam Bankman-Fried](/news/article/sam-bankman-fried-lost-billions) corporation.  

Earlier, the firm acknowledged its partner’s suspension of withdrawals in a [Twitter thread](https://twitter.com/Gemini/status/1592873279232278532). It also announced that its team is working with the crypto lender to ensure quick recovery of funds of the Earn program. 

It assured its clients that these events would not affect the activities on the [Gemini](/news/article/gemini-crypto-review) platform. However, a couple of hours later, it experienced an outage that shook investors' trust.

## Gemini crypto exchange outage caused $485m outflows

The server outage on the platform halted the operations affecting the withdrawals and deposits. However, it has only been down for about an hour. Per its official statement on Twitter, the disruption occurred at its primary databases due to the Amazon Web Services EBS.

The exchange's team swiftly recovered it and announced it was "fully back online".

![gemini exchange tweet](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/geminitweet_50471f672f.webp)
 
Moreover, it reassured its users about the safety of their funds. Nonetheless, the disruption created panic among the users, which resulted in mass outflows. 

According to [Nansen](https://www.nansen.ai/), the blockchain insights firm, more than $485 million has been withdrawn from the exchange in the past 24 hours. This is the highest outflow for any exchange in the same period. On the other hand, the inflows for the platform were only $78 million.  

## The unstoppable FTX contagion

Gemini and Genesis Global are just some digital asset service providers that suffered after the FTX collapse. Various other firms are moving towards insolvency. Crypto lenders [BlockFi](/news/article/ftx-collapse-blockfi-suspend-withdrawals) and SALT are recognised names among them. This collapse may affect many other significant firms in the future as investors' confidence seems to be shaken.


Gemini crypto exchange falls prey to FTX contagion

This [Gemini](https://www.gemini.com/) crypto review will look at a regulated cryptocurrency trading platform, wallet, and custodian that makes buying bitcoin, ether, and other cryptocurrencies simple and secure.

Created by Cameron and Tyler Winklevoss, the platform is among the most popular exchanges. The most significant advantage is its security - all funds are stored in cold storage, and two-factor authentication is required for all transactions.

A Gemini crypto review shows that the exchange makes it easy to buy cryptocurrencies with a bank account or debit card. It is also possible on this platform for you to trade cryptocurrencies.

[The exchange](https://www.gemini.com/) offers a tier-based service with distinct interfaces and fee structures for casual investors and experienced traders.

It has its currency, the Gemini dollar, a mobile app, and a payment app. The Gemini dollar, unlike most cryptocurrencies, is a "stablecoin" tied to the US dollar.

## Gemini crypto services

Gemini offers a variety of services apart from trading cryptos. The primary services provided are:
Gemini Exchange: Here, you can buy, sell, and store cryptocurrencies.

Gemini Earn: This is a lending service where you can lend your crypto to institutional borrowers to earn interest. With this, you can get up to 8.05% interest on your cryptocurrencies. This is available only in the US, Singapore, and Hong Kong.

[Gemini Credit Card](https://www.gemini.com/credit-card): It is possible to receive up to 3% rewards in crypto on your purchases using this card. This card is available only in the US.

The platform also includes more advanced services like an active trader, staking, Gemini dollar, Gemini Custody, Gemini Clearing, and Gemini Wallet.

## How to use Gemini

Continuing our Gemini crypto review, we look at the mobile app and [website](https://www.gemini.com/). These are the two main places where you can buy and sell cryptocurrency on this exchange platform.

The steps to buying cryptocurrencies on the exchange are: 

### Firstly, create an account on the exchange platform.

To buy cryptocurrency, you'll need to fund your account after you've opened one and been verified. You can add funds to your account in various ways, including a debit card, a wire or bank transfer, and Apple Pay or Google Pay. After you've verified your account and linked a funding source, you'll be able to start buying cryptocurrency on the website in just a few steps.

Choose the cryptocurrency you want to purchase. After logging into the [Gemini website](https://www.gemini.com/), you'll be taken to the homepage. Navigate to the ‘Market’ tab to browse the 70+ cryptocurrencies available for purchase and sale. Choose ‘view details’ on the cryptocurrency you want to purchase.

Make your order. When you get to the page of the cryptocurrency you want to buy, you'll see much information about it. Begin filling out the fields under 'Make a Trade' on the right-side panel of the page. 

Determine whether you want to place a one-time or recurring order and how much you want to purchase. You may, depending on your jurisdiction, be able to immediately transfer crypto you purchase directly into Gemini Earn by toggling 'Transfer to Earn' if the crypto is supported in Earn.

### Select a payment method.

### Double-check your order and click Confirm.

Choose one from the Market tab or your portfolio to sell your cryptocurrency on the exchange website. When you're on the price page for a cryptocurrency, you can toggle the sell order type on the right-side panel, enter the amount you want to sell, and click confirm.

## Gemini [trading charges](https://www.gemini.com/fees)

When you buy or sell crypto on Gemini, you'll be charged convenience and transaction fees. These fees apply whether you purchase through Gemini's online store or the mobile app. Both will be displayed as your "quoted price" before you complete your purchase.

## Convenience fee

The convenience fee for a given trade is approximately 0.5% of the Gemini market price. However, this can vary depending on the market. This fee is also reflected in the cryptocurrency you purchase. For example, if bitcoin (BTC) currently trades at $30,000 per unit, you'd pay $30,150 for one, including the fee.

## Transaction fee

A transaction fee based on your trade payment will be added to the convenience fee. This fee is standard for crypto conversions, such as trading bitcoin for [litecoin](/news/article/litecoin-price-gbp). The fee for buying and selling cryptocurrency varies depending on the currency used. It ranges from a flat fee for less pricey orders to a percentage of more expensive transactions.

## Pros and Cons

### Pros

More than 60 countries have access to the platform. It is also available to users in all 50 states and the District of Columbia.

### Cons

Gemini charges relatively high fees in comparison to its competitors. Some investors may be confused by the platform's layered fee structure, and high prices can reduce investors' returns.

## Security features and safety

Unlike money in a bank account, money in cryptocurrency is not FDIC-insured. However, [Gemini](/news/article/gemini-crypto-exchange) protects users' digital assets with multi-layered security measures highlighted on its website.

According to the exchange, the "majority" of your cryptocurrency is stored in an offline, cold storage system - the safest way to safeguard cryptocurrency from hackers. However, a small portion is kept in an online hot [wallet](/news/article/best-crypto-wallet) protected from theft due to a security breach, hack, fraudulent transfer, or employee theft.

The policy does not protect against losses caused by unauthorised access to your account. Within Gemini, you can create a list of approved addresses that restricts who can withdraw from your account (along with other account security features like two-factor authentication). Still, if your identity is stolen or your password is compromised, you may be unable to recover any funds lost.

## Conclusion

Gemini crypto exchange is a regulated exchange platform, and that's a big plus. It means you can have greater faith that your funds are safe and secure. The exchange platform has more than 70 selections of cryptocurrencies. It is a solid choice for those looking for a safe and secure place to buy crypto or earn interest on their crypto investments.

Also, if you want a simple platform with a great mobile app for buying, storing, and selling cryptocurrencies, then the exchange could be the right place for you.



Gemini Crypto Review

Gemini, a New York-based crypto exchange, has announced that it will offer staking support for its investors, particularly those in Hong Kong, Singapore, and the US.

This means that platform users can participate in [staking rewards](https://www.coindesk.com/learn/crypto-staking-101-what-is-staking/) for MATIC on the Polygon network. It will also roll out support for DOT, SOL, AUDIO, and ETH in the coming months. This move is expected to help bolster Gemini's goal of becoming the world's most trusted and regulated digital asset platform.

It aims to provide greater returns on investment for its users. Several exchanges are looking to add staking services. [This follows Ethereum](/news/article/ethereum-the-merge) 2.0 replacing Proof-of-Work (PoW) with a faster and more energy-efficient Proof-of-Stake (PoS) system on 15 September.

## Gemini staking

Layla Amjadi, Vice President of Product for Gemini, said that "the firm's decision to introduce staking services was driven by investor interest in [the merge](https://www.coindesk.com/learn/what-is-the-merge-and-why-has-it-taken-so-long/)". The VP further told CoinDesk that it has become abundantly clear that Gemini staking is something people are interested in, especially with Ethereum's recent merge.

It provides more liquidity and higher yields, making it a more desirable option. The company will pay for the infrastructure and gas needed to stake and unstake, as well as penalties that might be charged in the process.

## Should you consider Gemini staking?

There are reasons you might want to stake your coins:

•	It's a great way to earn passive income, rather than just holding your coins and waiting for them to appreciate in value.

•	When you stake, you help to secure the network and encourage more people to participate in its governance.

## How to stake coins on Gemini

If you would like to stake your cryptocurrencies on Gemini, you need to do a few things.

•	You'll need to create an account on the platform and verify your identity.

•	Deposit the cryptocurrencies that you want to stake into your account. Once your coins have been deposited, you can begin earning rewards.

The addition of staking services by Gemini comes at a time when more and more exchanges are looking into similar offerings. They include; Binance, Huobi Global, Bitmax, OKEx, Gateio, KuCoin, Coinex, and Bibox.

This increasing competition is likely driven by the recent attractive returns generated by PoS networks. For example, Cosmos' ATOM token holders can earn an annualized return of up to 50%.

Gemini staking support is another example of the exchange's commitment to providing a well-rounded user experience. Offering this service makes it easier for investors to earn a passive income from their digital assets. And with more assets expected to be added, the platform will become one of the go-to exchanges for crypto stakers.


Gemini Staking Support Launches

M,Cryptocurrency exchange platform [Gemini](https://www.gemini.com/) has raised $400 million in outside funding with the intention of developing increased access to ‘the metaverse’ for its of users.

The announcement highlights Gemini’s continued commitment to providing access to a variety of metaverses directly via its platform. The significant capital outlay has been raised from a variety of sources, including Morgan Creek Digital, Parafi Capital, 10T, Newflow Partners and Marcy Ventures.

Additionally, in a first of its kind, the Commonwealth Bank of Australia has also made a significant investment.

## Who are Gemini?

Gemini was formed in June 2013 by American twins Cameron and Tyler Winklevoss and quickly became the first licensed Ethereum exchange in the USA.

The Winklevoss twins are perhaps best known for bringing a lawsuit against Facebook ‘founder’ Mark Zuckerberg for stealing intellectual property related to the social media concept. The case was settled by Zuckerberg in an out of court settlement for $65 million in 2011.

### Gemini $7.1 Billion Valuation

The $400 million ‘growth equity funding’ investment brings the value of the Gemini group to roughly $7.1 billion and is the first time the platform has sought outside investment.

The Winklevoss twins are set to retain 75% ownership of the company with Morgan Creek Digital partner Sachin Jailty joining the board of directors as part of the $75 million investment from the firm.

## Crypto Market Sentiment

The cryptocurrency market reflected the increased confidence in metaverse development this week with massive price gains for Sandbox, Decentraland and Enjin among others. Indeed, Gemini released details earlier this week of a significant purchase of Sandbox which may have led to the 60% price rally witnessed in the last seven days.

## Decentralisation is a Spectrum

Cameron Winklevoss was keen to emphasise Gemini’s decentralised approach to the metaverse in stark contrast to centralised ownership from firms ‘like Facebook or Fortnite’.

Winklevoss went on to say: ‘There is another path, which is the decentralised metaverse and that is the metaverse where we believe there’s greater choice, independence and opportunity, and there is technology that protects the rights and dignity of the individuals. Decentralisation is a spectrum. We want to continue to move down the spectrum towards empowerment.’ 

  More [Metaverse news](/news/category/metaverse-news).


Latest Moni

Latest Gemini News

Read the latest Gemini news.