Gemini receives $100M personal loan from Winklevoss twins

The New York Department of Financial Services is investigating the exchange after Gemini customers claimed Earn accounts were FDIC-protected.

Gemini receives $100M personal loan from Winklevoss twins

In light of the recent slump in the value of cryptocurrencies, it has been reported that Tyler and Cameron Winklevoss, co-founders of the cryptocurrency exchange Gemini, have taken money out of their own bank accounts in order to keep the company afloat.

After failing to secure financing from third-party investors, the Winklevoss twins are said to have provided Gemini with a personal loan of one hundred million dollars, as reported by Bloomberg on April 10th.

The rumored loan arrived at a time when authorities were investigating Gemini’s operations. The United States Securities and Exchange Commission filed charges against Gemini and Genesis Global Capital in January on the grounds that the two companies had offered unregistered securities through the Earn program of the exchange.

After claims that a large number of Gemini customers claimed assets in their Earn accounts had been accorded FDIC protection, the New York Department of Financial Services is apparently also conducting an investigation into the exchange.

After the revelation of the accusations, Tyler Winklevoss accused the SEC of issuing a “fabricated parking ticket.” He said that Gemini personnel had been in talks with the regulator for more than a year prior to its enforcement action.

This accusation came after the SEC had announced the charges. Coinbase, a cryptocurrency exchange, lodged a similar complaint. According to the chief legal officer of Coinbase, personnel met with SEC authorities “more than 30 times over nine months,” but the company nevertheless received a Wells notice.