How Crypto’s Costly Payments Problems Surfaced at Gemini

Crypto was supposed to revolutionize payments. But crypto firms are still getting tripped up with old-school banking problems.

Gemini, the crypto exchange founded by Cameron and Tyler Winklevoss, offers a case study in how quickly things can go wrong. The crypto exchange saw a surge in fraud when it launched a crypto rewards credit card last year, costing it millions of dollars and forcing it to pause the rollout, said three people familiar with the matter.

It also lost tens of millions in recent years due to lax withdrawal policies on cryptocurrency that users purchased with bank transfers, two people familiar with the matter said.