The Winklewoss brothers, the founders of the crypto exchange Gemini, will reportedly lend $100 million to the exchange.
The Gemini crypto exchange, founded by the Winklevoss twins, was hit after the FTX crash, which triggered a wave of crisis scares in the crypto space. Gemini was forced to stop withdrawals from individual investors in its yield product Gemini Earn following the bankruptcy of its credit partner Genesis Global.
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Gemini also had an outflow of $485 million in November as investors withdrew funds amid uncertainty and volatility.
Genesis Global was a crypto lending unit of the Digital Currency Group (DCG), which also owns Grayscale. Genesis Global filed for bankruptcy on January 18, 2023, after losing $1.2 billion in a crash that destroyed most of its customers’ accounts. Genesis Global’s largest creditors, Gemini and Earn, owed their customers more than $765 million.
This dispute sparked a public feud between Gemini co-founder Cameron Winklevoss and DCG founder and CEO Barry Silbert. Winklevoss accused Silbert of being dishonest and acting irresponsibly, while Silbert accused Winklevoss of being greedy and opportunistic.
The two also disagreed over the performance of GBTC, which is trading at a massive discount to the price of Bitcoin, over investors’ dissatisfaction with Grayscale’s management and fees.
*Not investment advice.
