Reports from financial publications indicate that cryptocurrency exchange Gemini has received a $100 million loan from two of its co-founders, Tyler and .
The loan was said to be made out of personal expense, and was the result of an internalized decision after several unsuccessful attempts on the part of Gemini to from external investors. The loan amount was first disclosed from a report on Bloomberg.
The U.S.-registered crypto exchange has faced multiple obstacles during the ongoing market downturn for digital assets. In January, the U.S. Securities and Exchange Commission (SEC) charged both Gemini and Genesis Global Capital with offering through the exchange's Earn program. New York's Department of Financial Services also reportedly initiated an investigation into the exchange after multiple Gemini users alleged that their 'Earn' account assets had been .
Tyler Winklevoss responded to the charges by accusing the SEC of issuing a "manufactured parking ticket." He claimed that Gemini's staff had been engaged in discussions with the regulator for over a year before the enforcement action took place. This complaint is reminiscent of the experience of crypto exchange Coinbase, whose chief legal officer Paul Grewal stated that they had met with SEC representatives more than 30 times over a nine-month period, only to still receive a Wells notice.
The Winklevoss twins have decided to support their crypto exchange Gemini Trust Co. through this tumultuous market period. According to sources familiar with the matter, the $100-million loan was made after Gemini had informally sought funding from external investors in recent months without reaching any agreements. Neither Gemini nor the Winklevoss twins have commented on the situation.
The crypto market continues to face challenges, and exchanges such as Gemini have been trying to adapt and in the global crypto industry. Despite these , the sort of "lifeline" extension from its co-founders exudes some confidence and a sense of determination for the exchange.
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