- Tyler and Cameron Winklevoss loaned $100 million to support their Gemini Trust Co. crypto exchange, Bloomberg reported.
- They made the move after Gemini sought funding from outside investors without reaching any agreements.
- Venture funding for crypto startups dropped 80% in the first quarter, after FTX collapsed and the crypto market suffered a downturn.
Billionaires Tyler and Cameron Winklevoss have loaned $100 million of their own money to support their Gemini Trust Co. crypto exchange after running into hurdles during the market slump for digital assets, according to a Bloomberg report.
The brothers made the loan recently after Gemini informally sought funding from outside investors without reaching any agreements, sources told Bloomberg, adding that the money will be used to fund operations.
The report said neither Gemini nor the Winklevoss twins responded to requests for comments.
Gemini is navigating rough waters after last year’s implosion of FTX, what was once the third-largest crypto exchange, and slowdowns in the tech and crypto industries. Venture funding for crypto startups in the first quarter plunged 80% from a year ago to $2.4 billion, the report said, citing data from research firm PitchBook.
FTX’s blow-up left $900 million of funds from Gemini clients stuck on the platform after lending partner Genesis halted withdrawals. That sparked a feud between the Winklevoss twins and Barry Silbert, the CEO of Genesis’ parent company DCG.
The twins and Silbert in February reached a deal in principle to resolve the dispute, under which Gemini would contribute as much as $100 million, the report said. The loan to Gemini from the Winklevoss twins won’t go toward that agreement.
Among its other challenges, the Securities and Exchange Commission in January charged Gemini and Genesis’ lending arm, Genesis Global Capital, for the unregistered offer and sale of crypto asset securities through a lending program named Gemini Earn.
Tyler Winklevoss argued in January that the SEC action was counterproductive to the company’s aim of settling cases with customers.
Also in January, the exchange laid off 10% of its workforce, in another round of cuts.
But cryptocurrencies have been rebounding this year, with bitcoin late Monday rallying above $30,000 for the first time since June 2022. Bitcoin has surged about 80% during 2023 after sliding more than 60% last year.