Cryptocurrency exchange Gemini is continuing business restructuring as the exchange has entered into a court battle with the US Securities and Exchange Commission (SEC) over its lending products.
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Although details remain undisclosed, the Winklevoss-founded has laid off another 10% of staff in its third round of cuts, The Information reports, citing an internal letter. Gemini Co-Founder, Cameron Winklevoss, said in the letter that the US-based crypto exchange was hoping to avoid additional reductions.
However, persistent "negative macroeconomic conditions and unprecedented fraud perpetuated by bad actors in our industry have left us with no other choice but to revise our outlook and further reduce headcount," he wrote.
In mid-January, the SEC charged Gemini and Genesis Global Capital with selling unregistered securities in the Earn program. According to the indictment, the Earn landing product offered investors income of up to 8% per year on deposits made.
However, the exchange suspended payments from the program in mid-November coinciding with the financial problems of the program’s lead partner, Genesis Trading's OTC platform.
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