Gemini will lay off 10% of its workforce and accuses Genesis of “unprecedented fraud”.

According to ‘The Information’ media outlet, which had access to an internal message from the company founded and run by the brothers Cameron and Tyler Winklevossthe exchange blames the bankruptcy of the crypto lender Genesis and the down market as the main causes of this further downsizing.

“We hoped to avoid further cuts after the summer, but the persistence of negative macroeconomic conditions and the absence of a labor market are determining factors. the unprecedented fraud perpetrated by bad actors in our industry have left us with no choice but to revise our outlook and further reduce our workforce,” said Cameron Winklevoss.

Gemini had already reduced its workforce by 10% in June and made further layoffs in July, according to TechCrunch. Gemini’s workforce has been reduced, according to figures from “The Information”, from 1,100 people at the start of 2022 to between 650 and 700 people by the end of this year. With this new round of layoffs, the cryptocurrency exchange could see its workforce drop below 600 people.

It should be recalled that the Winklevosses threatened to sue Genesis and Digital Currency Group CEO Barry Silbert. the $900 million debt acquired as a result of the Gemini Earn program.. Furthermore, the Securities and Exchange Commission (DRY) accused the two companies of sale of unregistered securities with this product.

As well, the collapse of FTXwhich accentuated the cryptocurrency bear market, caused other major companies in the sector, such as Coinbase oh Crypto.com have announced large waves of layoffs in recent weeks, while other companies such as BlockFi were forced to file for bankruptcy. For its part, the cryptobank silver gate reported in recent days that its losses in 2022 amounted to 877 million USD.