• 23 July, 2024
News

Winklevoss Twins Give $100 Million Loan to Gemini Amid Withdrawal Woes

Gemini Trust, the cryptocurrency exchange founded by Tyler and Cameron Winklevoss, has received a $100 million loan from the twins to support the exchange amid the market downturn. According to Bloomberg, the brothers decided to provide the loan after Gemini failed to secure outside investment. 

The loan comes as Gemini faces issues related to the freeze of withdrawals in the aftermath of FTX‘s collapse, which locked up money for customers of Gemini’s Earn yield product.  Gemini, which was valued at $7.1 billion at the end of 2021 after raising $400 million, has faced its own troubles during the most recent prolonged market downturn. 

The exchange had partnered with Genesis on its Gemini Earn lending services, and when Genesis went bankrupt, Gemini was forced to pause redemptions on the Earn accounts. As a result, $900 million in client funds were left unaccounted for, and a public feud broke out between the Winklevoss twins and Barry Silbert, CEO of Digital Currency Group, Genesis’ parent firm.

As part of a settlement Digital Currency Group (DCG) reached with creditors, Gemini said it would contribute up to $100 million to Earn users. The loan from the Winklevoss twins will not go towards Earn, but rather to fund operations, according to anonymous sources.

Despite these setbacks, the Winklevoss twins continue to be major players in the crypto industry. Gemini has been one of the top exchanges by trading volume, and the twins are known for their bullish views on Bitcoin and cryptocurrency. They first gained notoriety for their legal battle with Mark Zuckerberg over the founding of Facebook.

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