Tyler and Cameron Winklevoss, co-founders of the United States-based cryptocurrency exchange Gemini, have turned to their own pockets to finance the business amid the cryptocurrency market crash.
According to a Bloomberg report on April 10, the Winklevoss twins made a $100 million personal loan to Gemini following attempts to obtain financing from outside investors. Cointelegraph reached out to Gemini for comment but did not hear back by press time.
EXCLUSIVE: Gemini founders Tyler and Cameron Winklevoss have lent $100 million to the crypto platform https://t.co/owaGrepngE
—Bloomberg (@business) April 10, 2023
The reported loan came amid regulators scrutinizing Gemini’s activities. In January, the United States Securities and Exchange Commission (SEC) accused Gemini, as well as Genesis Global Capital and the cryptocurrency exchange, of offering unregistered securities through the exchange’s Earn program. The New York Department of Financial Services also reportedly began investigating the exchange after many Gemini users claimed their Earn account assets had received FDIC protection.
Following the announcement of the charges, Tyler Winklevoss accused the SEC of issuing a “fabricated parking ticket,” alleging that Gemini staff had been in talks with the regulator for more than a year prior to their enforcement action. The complaint echoed that of cryptocurrency Coinbase, whose chief legal officer said staff met with SEC representatives “more than 30 times over nine months” but still received a tip from Wells.
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