The Winklevoss twins' crypto exchange Gemini is facing severe financial distress after losing more than half its market value this year. The company has implemented drastic measures including cutting 30% of its workforce and withdrawing from major overseas markets as it struggles to maintain operations.

Gemini Space Station Inc.'s troubles have intensified scrutiny on the $330 million in loans the company has outstanding. The exchange's retreat from international markets signals a significant contraction in its global ambitions, raising questions about the sustainability of its business model in the current crypto market environment.

The exchange's financial difficulties come amid a broader crypto market rout that has devastated valuations across the sector. Gemini's workforce reduction and market pullback represent a dramatic reversal for the company, which had previously pursued aggressive expansion strategies. The situation highlights the challenges facing crypto exchanges as they navigate a hostile regulatory environment and declining trading volumes.