Winklevoss Twins Loan $100M To Gemini Amid Crypto Market Downturn

Key Points:

• The Winklevoss twins loaned $100 million to their crypto exchange, Gemini Trust Co.
• Venture funding for crypto startups has plummeted 80% to $2.4 billion in Q1 2022 compared to the same period last year, according to PitchBook.
• Gemini faced its troubles during the crypto bear market after raising $400 million at a valuation of $7.1 billion in November 2021.

Gemini received a $100M loan from the Winklevoss twins after seeking external funding, as per Bloomberg. The exchange had a rough time due to various legal issues and the crypto bear market.

Gemini has been facing a number of setbacks during the recent market downturn. Venture funding for crypto startups has plummeted 80% to $2.4 billion in the first quarter compared to the same period last year, according to PitchBook.

Gemini faced its own troubles during the crypto bear market after raising $400 million at a valuation of $7.1 billion in November 2021. The fallout from the implosion of FTX led to the bankruptcy of crypto lender Genesis Global Holdco, which was Gemini’s sole partner on its Gemini Earn lending product.

This forced Gemini to pause redemptions on Earn accounts, leaving $900 million of customer money in limbo. In February, Gemini kicked in as much as $100 million to resolve the dispute. Recently, the Winklevoss twins made a $100 million loan to Gemini after informally seeking funding from outside investors without coming to any agreements.

Gemini has also faced legal issues. The Securities and Exchange Commission has sued Gemini and Genesis, alleging that the Earn product broke securities laws. Gemini also faces a lawsuit from the Commodity Futures Trading Commission, which alleges that Gemini misled the derivatives regulator in a bid to launch the first US-regulated Bitcoin futures contract.

Gemini shed 10% of its workforce in January, adding to a wave of layoffs in June. The exchange also lost its chief operating officer, Noah Perlman, who went to rival Binance as the chief compliance officer.

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