Gemini Exchange Announces Job Cuts as Crypto Winter Bites

Key Insights:

• On Thursday, crypto exchange Gemini announced job cuts in response to the crypto winter.
• The exchange also announced the closure of all physical offices, citing macroeconomic and geopolitical turmoil as contributory factors.
• On Thursday, news also hit the wires of the CFTC suing Gemini for making false and misleading statements.

The crypto winter is beginning to take its toll on several crypto exchanges, with Gemini the latest to take steps to manage current market conditions.

Year to date, bitcoin (BTC) is down 34% and, more significantly, down by 54% from November’s all-time high of $68,979.

The bearish trend across the crypto market left the total crypto market cap down $1,770 billion from the market’s November 10 peak of $3,009 billion.

Crypto Exchange Gemini Announces a 10% Cut in Payrolls

On Thursday, Gemini co-founders Cameron and Tyler Winklevoss announced plans to reduce the workforce by approximately 10%.

The co-founders cited the “crypto winter,” together with geopolitical turmoil and the current macroeconomic environment as contributory factors.

In response, the exchange plans to focus only on critical products in anticipation of persistent turbulent market conditions.

According to the announcement,

“After much thought and consideration, we have made the difficult but necessary decision to part ways with approximately 10% of our workforce.”

The announcement went on further to say,

“We have closed all of our physical offices today.”

Gemini is not the only exchange managing the crypto winter through payrolls.

This week, Coinbase hit the news, announcing an extension to its hiring freeze. Additionally, as reported by Reuters, Coinbase plans to “rescind a number of accepted offers in order to deal with current macroeconomic conditions.”

In May, Coinbase entered the Fortune 500, based on 2021 revenue figures. As reported by FX Empire, Coinbase derives more than 85% of its revenue from trading fees. The crypto winter continues to weigh on trading volumes, leading to dire first-quarter earnings and the decision to freeze hiring.

For Gemini, the situation exasperated following news of the US Commodity Futures Trading Commission (CFTC) suing Gemini for making false and misleading statements.

US Commodity Futures Trading Commission Sues Gemini

On Thursday, news hit the wires of the CFTC suing Gemini for “making false and misleading statements concerning a bitcoin futures contract the firm was pursuing in 2017.”

According to Reuters,

“The agency contends that Gemini, a crypto exchange led by Cameron and Tyler Winklevoss, violated federal laws governing commodities, and is seeking civil fines and other remedies.”

Reuters went on further to report,

“Gemini officials “knew or reasonably should have known that the statements and information conveyed or omitted” by the company were false or misleading with respect to how a proposed bitcoin futures contract could be susceptible to manipulation, according to the filing.”

Gemini responded to the claim, saying,

“We have an eight-year track record of asking for permission, not forgiveness, and always doing the right thing. We look forward to definitively proving this in court.”

The CFTC comes at a time when the SEC attempts to stake its claim on the crypto industry.