Times are tough for Gemini. After a particularly public scuffle with Genesis, the platform is in financial difficulty. And the Winklevoss brothers would not have succeeded in finding an investor, if one believes a personal loan which would have been granted to the company. What’s going on at Gemini?
The Winklevoss brothers make a substantial loan to their own Gemini platform
The news was reported by Bloomberg, who interviewed sources familiar with the matter. According to the latter, the Winklevoss brothers had to look into their own pockets to bail out a Gemini platform in great difficulty lately. These would be $100 million allegedly loaned to the company.
Gemini would have tried in recent months to find external investors to bail out its coffers, but the platform would have failed, and was therefore forced to turn to the two co-founders. As a reminder, it has already carried out two waves of layoffs in June 2022 and January of this year.
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Will Gemini manage to climb the slope?
Gemini is one of the collateral victims of the FTX affair. His partnership with the late Genesis indeed cost him the substantial sum of 765 million dollars, which were not returned. The sum of 100 million dollars lent by the Winklevoss brothers is therefore only part of the losses which the company had to face.
Other signs indicate that Gemini is floundering. The Securities and Exchange Commission (SEC), currently campaigning against all crypto-related platforms, has filed a lawsuit against Genesis and Gemini. Both companies are accused failing to comply with federal securities laws.
Times are therefore particularly tough for platforms established in the United States, which are suffering the ramifications of the fall of FTX on the one hand, and on the other a regulatory framework that has become very hostile. Will Gemini survive it? That will partially depend on the Winklevoss’ ability to get her back to life.
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Source: Bloomberg
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Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
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