Tyler and Cameron Winklevoss, co-founders of the US-based Gemini cryptocurrency exchange, reportedly reached into their very own pockets to finance the business within the face of a downturn within the cryptocurrency market.
According to a Bloomberg report on April 10, the Winklevoss twins made a $100 million personal loan to Gemini after attempting to secure funding from outside investors. Cointelegraph contacted Gemini for comment but received no response on the time of publication.
EXCLUSIVE: Gemini founders Tyler and Cameron Winklevoss loan $100 million to crypto platform https://t.co/owaGrepngE
— Bloomberg (@business) April 10, 2023
The reported loan got here under regulatory scrutiny of Gemini’s business. In January, the U.S. Securities and Exchange Commission (SEC) charged Gemini – in addition to Genesis Global Capital and the cryptocurrency exchange – with offering unregistered securities under the exchange’s Earn program. The New York Department of Financial Services also reportedly launched an investigation into the exchange after reports that many Gemini users claimed that assets of their Earn accounts had been placed under FDIC protection.
Related: Gemini and Genesis’ legal woes could shake the industry even further
After the allegations were made, Tyler Winklevoss accused the SEC of issuing a “fabricated parking ticket”, claiming that Gemini employees had been talking to the regulator for greater than a 12 months before taking enforcement motion. The grievance resembled that of cryptocurrency exchange Coinbase, whose chief legal officer said staff met with SEC officials “greater than 30 times in nine months” but still received notice from Wells.
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