1 year ago
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The brothers decided to back their crypto exchange Gemini with $100 million amid the market downturn. The cash injection came after they failed to find funding from outside investors.
According to two people familiar with the matter who spoke to Bloomberg, the Winklevoss twins brought in their personal funds after several months of trying to raise outside capital. Neither of the brothers reached back to any media outlets to comment on the situation.
The $100 million stand out because it’s the same amount that Gemini pledged to return to Gemini Earn users involved in the Genesis bankruptcy.
Related: DCG sells Genesis as part of bankruptcy reorganization plan
After FTX’s collapse last year, Genesis suspended withdrawals, which prevented Gemini Earn users from accessing their funds because Genesis was a Gemini lender on the product. In a settlement reached in February between DCG and creditors, Gemini agreed to provide up to $100 million to compensate Earn users.
However, since no Gemini representatives reached back, it’s not yet clear whether these numbers are related.
The reported loan also comes amid US SEC allegations against Gemini and Genesis for offering unregistered securities through the Gemini Earn product.
Related: SEC charges Gemini and Genesis with offering unregistered securities
Following the announcement of the charges, Tyler Winklevoss claimed that the SEC issued a “super lame…manufactured parking ticket,” and stated that the Gemini team had been in talks with the regulator for over a year before the enforcement action was taken.
The New York Department of Financial Services also launched an investigation into the exchange after numerous Gemini users claimed that assets in their Earn accounts had FDIC protection.
English (US) ·