Winklevoss Brothers Lend Gemini $100 Million During Recession
Key Points:
- The Winklevoss co-founders recently provided their own Gemini with a $100 million loan to support the business.
- They made the loan after trying to raise capital from outside, but it did not lead to a deal.
- FTX led to the bankruptcy of crypto lender Genesis Global Holdco, leaving Gemini severely damaged in the process.
According to Bloomberg News, the Gemini Winklevoss co-founders recently went out of their own pocket to provide their company with a $100 million loan to support the exchange’s business during a market downturn withdrawal.
Before the loan was extended, the brothers informally sought financing from outside investors but reached no agreement, according to people familiar with the matter. The crypto company went through its own troubles during the crypto bear market.
The aftermath of the FTX boom led to the bankruptcy of crypto lender Genesis Global Holdco, leaving Gemini severely damaged in the process. Genesis Global used to be Gemini’s sole partner on their lending product. When Genesis froze withdrawals in November, it forced the Winklevoss brothers’ company to pause redemption on its Earn account. The move left $900 million in client funds in limbo. It sparked a heated argument between the Winklevoss twins and Barry Silbert, chief executive officer of Digital Currency Group, the company’s parent company Genesis.
As part of the agreement DCG reached with its creditors in February, Gemini said it would provide up to $100 million in cash to Earn users. It is still being determined whether the $100 million loan relates to the $100 million promised to Earn Users.
To make matters worse, the US Securities and Exchange Commission sued Gemini and Genesis, alleging that the Earn product violated securities laws. Gemini also faces a lawsuit from the Commodity Futures Trading Commission, alleging that the company misled the derivatives regulator in an attempt to launch the first US-regulated Bitcoin futures contract.
DISCLAIMER:Â The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
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Winklevoss Brothers Lend Gemini $100 Million During Recession
Key Points:
- The Winklevoss co-founders recently provided their own Gemini with a $100 million loan to support the business.
- They made the loan after trying to raise capital from outside, but it did not lead to a deal.
- FTX led to the bankruptcy of crypto lender Genesis Global Holdco, leaving Gemini severely damaged in the process.
According to Bloomberg News, the Gemini Winklevoss co-founders recently went out of their own pocket to provide their company with a $100 million loan to support the exchange’s business during a market downturn withdrawal.
Before the loan was extended, the brothers informally sought financing from outside investors but reached no agreement, according to people familiar with the matter. The crypto company went through its own troubles during the crypto bear market.
The aftermath of the FTX boom led to the bankruptcy of crypto lender Genesis Global Holdco, leaving Gemini severely damaged in the process. Genesis Global used to be Gemini’s sole partner on their lending product. When Genesis froze withdrawals in November, it forced the Winklevoss brothers’ company to pause redemption on its Earn account. The move left $900 million in client funds in limbo. It sparked a heated argument between the Winklevoss twins and Barry Silbert, chief executive officer of Digital Currency Group, the company’s parent company Genesis.
As part of the agreement DCG reached with its creditors in February, Gemini said it would provide up to $100 million in cash to Earn users. It is still being determined whether the $100 million loan relates to the $100 million promised to Earn Users.
To make matters worse, the US Securities and Exchange Commission sued Gemini and Genesis, alleging that the Earn product violated securities laws. Gemini also faces a lawsuit from the Commodity Futures Trading Commission, alleging that the company misled the derivatives regulator in an attempt to launch the first US-regulated Bitcoin futures contract.
DISCLAIMER:Â The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Foxy
Coincu News
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