Gemini COO Noah Perlman has left the cryptocurrency exchange. It is reported by Bloomberg, citing sources close to the stock exchange. Perlman joined Gemini in 2019 as head of compliance. Prior to Gemini, Perlman worked for US financial giant Morgan Stanley.
What exactly caused the top manager to leave Gemini is unclear. The company’s reshuffle comes amid problems at Gemini Earn’s credit division, which froze clients’ assets due to a liquidity crisis at partner Genesis.
In early December 2022, the media found out that the Genesis crypto broker owed about $900 million to Gemini clients. Later, Gemini co-founder Cameron Winklevoss, in an open letter to the Genesis parent company, Digital Currency Group (DCG), confirmed the amount stated in the media. In the letter, the head of Gemini also added that DCG took out a loan from Genesis in the amount of more than $1.6 billion and still has not repaid it.
DCG CEO Barry Silber denied Winklevoss’ accusations that DCG owed Genesis $1.6 billion. However, the Gemini co-founder responded by saying that DCG is “hypocritically” trying to pretend that they “have nothing to do with the confusion” around Genesis. According to unofficial information, DCG is still trying to find investors who would agree to save the cryptocurrency broker from bankruptcy. Genesis, for example, has already asked for the help of lawyers from the investment bank Moelis & Company.
The Alabama Securities Commission launched an investigation into Genesis. Alabama’s financial regulator, along with agencies in several other states, is investigating whether Genesis encouraged its US clients to invest in securities, Barron’s found, citing regulator chairman Joseph Borg. Officially, no charges have been brought against the cryptocurrency broker.