- Tyler and Cameron Winklevoss have loaned $100 million to back their crypto exchange Gemini Trust Co., Bloomberg reported.
- They made the move after Gemini sought funding from outside investors without reaching any agreement.
- Venture capital funding for crypto startups plummeted 80% in the first quarter, after the collapse of FTX and the crypto market slowdown.
Billionaires Tyler and Cameron Winklevoss have loaned $100 million of their own money to back their crypto exchange Gemini Trust Co. after facing hurdles during the digital asset market crash, according to a Bloomberg report.
The brothers made the loan recently after Gemini informally solicited funds from outside investors without reaching any agreement, sources told Bloomberg, adding that the money will be used to finance the operations.
The report says neither Gemini nor the Winklevoss twins responded to requests for comment.
Gemini navigates choppy waters after last year FTX implosion, which was once the third-largest crypto exchange, and downturns in the tech and crypto industries. Venture capital funding for crypto startups in the first quarter fell 80% from a year ago to $2.4 billion, according to the report, citing data from research firm PitchBook.
The FTX explosion left $900 million in Gemini client funds stranded on the platform after lending partner Genesis halted withdrawals. This sparked a quarrel between the Winklevoss twins and Barry Silbert, the CEO of DCG, the parent company of Genesis.
The twins and Silvert in February reached an agreement in principle to resolve the dispute, under which Gemini would contribute up to $100 million, according to the report. The Winklevoss twins’ loan to Gemini will not go towards this deal.
Among his other challenges, the Security and Exchange Commission in January accused The lending arm of Gemini and Genesis, Genesis Global Capital, for the unregistered offering and selling of crypto asset securities through a lending program named Gemini Earn.
Tyler Winklevoss argued in January that the SEC’s action was counterproductive to the company’s goal of resolving customer disputes.
Also in January, the exchange laid off 10% of its workforcein another series of cuts.
But cryptocurrencies have rebounded this year, with bitcoins late monday rally above $30,000 for the first time since June 2022. Bitcoin jumped about 80% in 2023 after falling more than 60% last year.