Gemini's Path to Recovery: Winklevoss Twins Inject $100M as Exchange Battles Regulatory Hurdles

The Winklevoss brothers are making a decisive move to stabilize their struggling crypto exchange. According to Bloomberg sources, Tyler and Cameron Winklevoss—founders of Gemini Trust—have personally committed $100 million to shore up the platform after attempts to secure outside funding fell through. The self-funded rescue reflects the twins’ determination to keep their venture afloat amid a turbulent market environment.

A Series of Missteps and Market Headwinds

Gemini’s troubles didn’t emerge overnight. The exchange has weathered a perfect storm: prolonged bear market conditions, mounting regulatory scrutiny, and a catastrophic event that rippled across the industry. When FTX collapsed last year, it triggered a domino effect that exposed vulnerabilities in multiple crypto platforms, with Genesis Global becoming the most immediate casualty near Gemini’s operations.

For Gemini users holding assets in the Earn program—the exchange’s yield-generating product—the fallout was severe. Genesis, which served as Gemini’s lending partner for Earn, abruptly froze withdrawals in November following the FTX crisis. This decision forced Gemini to lock redemptions on Earn accounts, trapping approximately $900 million in customer funds and sparking a public dispute between the Winklevoss team and Genesis parent company DGC’s leadership.

From Tension to Settlement, Regulatory Battles Persist

The dispute between the Winklevoss twins and Genesis eventually de-escalated after negotiations concluded in February, yet legal challenges continued mounting. The U.S. SEC took aim at both Gemini and Genesis, arguing that the Earn product operated as an unregistered securities offering. Separately, the CFTC filed its own lawsuit, alleging that Gemini misrepresented facts to regulators during the approval process for a U.S.-regulated Bitcoin futures contract.

Looking Forward With Fresh Capital

Despite the regulatory and reputational damage, Gemini has signaled ambitions to expand. The exchange announced plans to launch an international derivatives trading venue focused on perpetual futures—products that remain prohibited for U.S. retail investors due to their unlimited leverage and risk profile. Whether the $100 million personal injection from the Winklevoss twins proves sufficient to restore confidence or simply delays an inevitable reckoning remains a question the crypto community is watching closely.