Cryptocurrency exchange Gemini faces a shareholder lawsuit alleging investors were misled about its business prospects following its 2025 public listing.
The complaint targets founders Cameron and Tyler Winklevoss, accusing them of false and misleading statements tied to the company’s September IPO.
Filed in Manhattan federal court, the proposed class action claims Gemini overstated its platform’s viability and global expansion potential in investor materials.
Shareholders also allege the company failed to disclose an impending strategic pivot toward prediction markets, shifting away from its core crypto exchange focus.
The lawsuit cites February disclosures revealing deep restructuring measures, including a 25% workforce reduction and exits from key international markets.
Investors pointed to executive departures, including the COO, CFO, and CLO, alongside projections of a potential $602 million net loss in 2025.
Gemini’s stock subsequently plunged below $7, marking a drop of over 75% from its $28 IPO price, intensifying investor losses.
The case seeks unspecified damages for shareholders affected between September 2025 and February 2026; the company has not yet responded.
