Taylor and Cameron Winklevoss, the billionaire twins behind the US-based crypto exchange Gemini, have dipped into their personal savings to support their company amidst strong headwinds.
The twins reportedly made a $100 million loan to Gemini, after the platform has endured a crypto bear market that has lasted for more than a year, combined with several major setbacks.
The loan was made by the well-known twins after efforts to secure funding from outside investors failed, Bloomberg reported on Monday, citing “people familiar with the matter.”
According to the sources, the efforts to secure funding were still on an informal stage, and the two twins were reportedly unable to make any agreements with potential investors.
The sources declined to be identified because the discussions were private, the report said.
Among the many setbacks for Gemini recently was the bankruptcy of Genesis Global, a crypto lender owned by Barry Silbert’s Digital Currency Group (DCG). Genesis for years partnered with Gemini to offer Gemini Earn, a program that offered high-interest accounts to depositors on Gemini.
Additionally, the Securities and Exchange Commission (SEC) has sued both Gemini and Genesis, alleging that the Earn program Gemini offered to clients violated US securities laws.
The commission said it is seeking civil penalties, disgorgement of ill-gotten gains plus prejudgment interest, and permanent injunctive relief.
In January, Gemini said it would let go of 10% of its workforce, marking the third round of layoffs at the crypto exchange in just eight months.
Gemini co-founder and CEO Cameron Winklevoss at the time blamed “persistent negative macroeconomic conditions” for the difficulties, while adding that “fraud perpetuated by bad actors in our industry have left us with no other choice but to revise our outlook and further reduce headcount.”
The “bad actors” referenced by Winklevoss likely refers to Genesis-owner Barry Silbert, who the Winklevoss twins have had a long feud with.
Among other things, Cameron Winklevoss has publicly called for the DCG board to sack Silbert from his role as CEO of the company.
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