Gemini’s 10-K reveals loan loop between exchange and founders
The post Gemini’s 10-K reveals loan loop between exchange and founders appeared on BitcoinEthereumNews.com.
Cameron and Tyler Winklevoss lent their own crypto exchange, Gemini, thousands of bitcoin (BTC) and ether (ETH) through Winklevoss Capital Fund (WCF), their private investment company. Gemini then pledged that crypto as collateral with Galaxy Digital and NYDIG to raise dollar loans. When the exchange went public in September 2025 at $28 per share, it converted $695.6 million of WCF debt into super-voting Class B stock at a 20% discount, giving the twins 94.7% of Gemini’s voting power. Gemini’s 10-K, filed yesterday, spelled out the entire structure. Social media users have called it a circular scheme. It’s all a circular ponzi >borrow BTC from related-party WCF>pledge these BTC with lenders to get $ loans (Galaxy, bond issuance, NYDIG) some of these loans were settled at IPO with discounted shares and there is more (Ripple & RLUSD, Convertible,…) — Deloitte gave a… https://t.co/mMT56uJiW9 — tmnxeq (@tmnxeq) March 31, 2026 The Winklevoss Capital Fund lending carousel Here’s the basic tale of how the money flowed. The Winklevii’s WCF lent BTC and ETH to Gemini through open-term agreements, i.e. with no fixed maturity. Gemini then posted that borrowed crypto as collateral with third-party lenders. Galaxy Digital extended $116.5 million in loans at 11-12% interest rates, collateralized at 145-155%. NYDIG provided $75 million through a repurchase agreement at 8.5%. Gemini used the dollars for operations and regulatory capital requirements. When the IPO closed on September 15, 2025, the exchange repaid Galaxy’s $116.5 million from $456 million in net proceeds from the IPO. Gemini now trades on the Nasdaq under symbol GEMI. The exchange also repaid $238.5 million under a warehouse credit facility with Ripple, though $154 million remained outstanding to Ripple at year end. The twins’ own debt didn’t get cash repayment, however. Gemini converted $200 million in WCF convertible notes and $475 million…
Filed under: News - @ April 1, 2026 12:28 pm