Gemini, a cryptocurrency exchange, has stated it would reduce its workforce by 10%.
The layoffs were revealed to the employees on Slack on Monday by the company’s president, Cameron Winklevoss, who cited “persistently unfavorable macroeconomic conditions and massive fraud committed by unscrupulous actors in the sector.”
This is at least the third wave of layoffs for the cryptocurrency trading firm in the previous eight months. According to TechCrunch, the firm cut 7% of its workforce, or 68 workers, in the second wave of layoffs in July 2022.
This news comes after cryptocurrency lending company Genesis Global Capital had declared bankruptcy. Genesis owes more than $3.5 billion to its top 50 creditors, including Gemini, which is its largest creditor and to whom it owes $765.9 million, according to its bankruptcy petition from last week.
Gemini is now caught up in the bankruptcy of cryptocurrency lender Genesis and is unable to pay out money to the owners of its Earn accounts. Gemini was already under pressure from rising interest rates and the contraction in the cryptocurrency market brought on by the collapse of FTX, which damaged consumer confidence.
It appears that the effects of the FTX disaster, which occurred in late November 2022, have not yet completely subsided.