Gemini gets a $100 million injection from twin owners

Last Updated on 20 mins by John Piper

According to sources familiar with the matter, Tyler and Cameron Winklevoss are the billionaire twin owners Gemini. They have used their financial resources to support Gemini.

Gemini Trust Co, a crypto exchange, has had to overcome financial difficulties during the bear markets. The Winklevoss twins sought outside funding from investors to address the financial setbacks. According to Bloomberg, the twins have funded the company with $100 million of their own, but without any agreements.

It has been difficult to find funding for established institutions and start-ups since the market crash and the subsequent decline of FTX. The industry suffered greatly from the involvement of Genesis Global Holdco, a cryptocurrency lending company. Genesis Global was the only partner of the crypto exchange in its lending product. Gemini was forced to suspend its Earn program with Genesis, which meant that Genesis could not withdraw funds. Customers were denied withdrawal options for nearly $1 billion. Barry Silbert, the parent company of Genesis (Digital Currency Group), and the Winklevoss Twins reached an agreement earlier this year to settle a dispute arising from the frozen accounts. Gemini would have to finance $100 million under the terms of the agreement. The loan taken by the twins would not be used to finance this, but rather to fund company operations.

Gemini’s difficulties in the cryptocurrency market

Gemini had to lay off 10% of its workforce in an effort to reduce costs at the start of the year. Gemini was also left vulnerable by the departure of the CEO, who left to take a job at a competitor company.

Gemini has been also under attack by US authorities. The United States Securities and Exchange Commission (SEC) claims that Gemini’s Earn product violated securities law. The SEC sued the exchange. Gemini was also sued by the Commodity Futures Trading Commission, alleging that it had misrepresented contracts and misled regulators in the derivatives industry.

Coin Insider’s first article, Gemini receives a $100 Million injection from its twin owners, appeared first on Coin Insider.

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