Bitcoin Bros In Trouble? Winklevoss Twins Face SEC Scrutiny, Sever Ties With Banking Partner

The Winklevoss twins are currently facing a series of challenges regarding their cryptocurrency exchange, Gemini.

The U.S. Securities and Exchange Commission (SEC) is suing Gemini for its alleged engagement in the unauthorized offering and selling of securities to retail investors, facilitated through the Gemini Earn cryptocurrency lending program.

In the first four months of 2023, Gemini's trading volume dropped nearly 50% compared to the final four months of 2022.

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Its market share remained low, despite a small rebound in April.

Contrarily, competitors Coinbase (NASDAQ: COIN), Kraken, and Binance (CRYPTO: BNB) expanded their market shares, with Binance leading at 46% of the global market.

In addition, one of their banking partners is looking to sever ties due to non-profitability, complicating their problems further.

This may have helped a bunch of Gemini customers recover some of their $900 million in crypto deposits locked in their now-defunct Earning product.

Attorney Charles Harder is representing the Winklevoss twins and Gemini Trust. The twins are fully committed to Gemini and focused on running their business successfully, he said.

The Winklevoss brothers — who rose to fame when they sued Meta Platforms (NASDAQ: META) founder Mark Zuckerberg, alleging he stole their ConnectU idea to create the social networking site Facebook recently — attended the Bitcoin 2023 conference in Miami. While there, they reportedly met with various corporate executives to strategize Gemini's future.

Their plans include setting up a second Gemini headquarters in the U.K., as well as an engineering hub in India and a derivatives exchange in several jurisdictions outside the U.S., U.K., and European Union. 

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