Gemini, a cryptocurrency exchange founded by Tyler and Cameron Winklevoss, reportedly used personal funds to finance their business amid the decline in the crypto market.
According to Bloomberg's April 10 report, the Winklevoss twins granted a personal loan of $100 million to Gemini after failing to secure external funding.
The loan was granted at a time when regulators were scrutinizing Gemini's activities. In January, the US Securities and Exchange Commission accused Gemini, as well as Genesis Global Capital, of offering unregistered securities through the exchange's Earn program. Additionally, the New York Department of Financial Services initiated an investigation into the exchange after numerous Gemini users claimed that assets in their Earn accounts had been granted FDIC protection.
Following the charges, Tyler Winklevoss accused the SEC of issuing a "pretextual traffic ticket," claiming that Gemini's staff had been in communication with the regulator for over a year prior to the enforcement action. His statement echoed that of Coinbase, another cryptocurrency exchange whose chief legal officer stated that its personnel had met with SEC representatives "more than 30 times over nine months," yet still received a Wells notice.
The forced regulatory action from agencies pushed the Gemini exchange to a corner, leading to a loss in both revenues as well as in reputation. It is possible that the founders ultimately had to put in their personal funds on the stake to streamline operations in the exchange and it should not be seen as a negative step for the exchange. However, it is also true that Gemini had to be in a terrible state that the founders had to open their personal wallets.
Also, Read - 24 Hrs Crypto Update, Apr 10: Crypto markets experienced an upward trend in trading
from Coin Gabbar News https://ift.tt/ogx6Tw1
via IFTTT
