Crypto exchange Gemini lays off 10% of its employees after Genesis bankruptcy


© Reuters.

Investing.com – The Gemini exchange is in economic trouble, as the company founded by the Winklevoss brothers said $900 million of its users had been loaned to Genesis. Under a common credit scheme, it should be possible for users to receive returns for deposited digital assets.

Genesis filed for Chapter 11 bankruptcy protection last week. The firm had loaned $1.2 billion to hedge fund Three Arrows Capital, which proved unrecoverable with the hedge fund’s bankruptcy.

For this sum, Genesis’ parent company, the Digital Currency Group, issued a promissory note to the company so that it would not go bankrupt and that a restructuring could take place. Obviously, the attempt to continue the activities failed.

It appears from filed bankruptcy documents that Gemini is Genesis’ largest creditor with $765.9 million.

Gemini also began to reorganize its business. This means in particular that an additional ten percent of employees must leave the company, which is already the third series of layoffs in the last eight months.

By Marco Oehrl



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