Winklevoss Twins' Gemini Debt Structure Under Scrutiny

The Winklevoss twins' financial dealings with their cryptocurrency exchange Gemini have raised concerns among industry analysts and investors. According to public filings, the brothers' private investment vehicle, WCF, lent thousands of Bitcoin (BTC) and Ether (ETH) to Gemini through open-term agreements.

Gemini used these cryptocurrencies as collateral with third parties, securing loans from Galaxy Digital and NYDIG. The exchange allocated the obtained funds for operations and regulatory capital requirements. In its September 2025 IPO, Gemini converted $675 million in WCF debt into Class B shares at a 20% discount to the price paid by retail investors.

As of December 31, 2025, Gemini still owed WCF approximately 4,619 BTC, equivalent to around $400 million. The exchange also paid loan fees amounting to $24.2 million to WCF during 2025. Additionally, WCF holds a significant portion of the lent cryptocurrencies in Gemini Custody addresses.