Gemini Faces Class Action After Strategy Change

Gemini is facing a new class action from shareholders who say the crypto exchange sold investors one story at its IPO and followed it with a very different plan soon after. The case puts fresh attention on Gemini, Tyler Winklevoss, Cameron Winklevoss, and other executives after a rough stretch of layoffs, market exits, and leadership departures.

Good to Know

• The lawsuit was filed in Manhattan federal court and targets Gemini, its co-founders, and other executives.
• Investors say IPO documents framed Gemini as a crypto exchange growing its user base and global reach, while a prediction market pivot was already coming.
• Gemini later cut 25% of staff, left the UK, EU, and Australia, and shut Nifty Gateway as part of broader cost cuts.

Lawsuit Centers on IPO Story and Later Cuts

According to the complaint, Gemini told public investors that its crypto exchange business was the core product and that growth in key global markets was part of the plan. Plaintiffs now argue those offering documents were “materially false and misleading” because Gemini was already “poised for an expensive and disruptive restructuring.”

Plaintiffs also say Gemini made an “abrupt corporate pivot to a prediction market-centric business model” after the September 2025 IPO. Gemini priced shares at $28 on Nasdaq and raised about $425 million in the offering.

That shift, according to the filing, left shareholders holding stock bought at artificially inflated prices. Reuters reported the lawsuit covers investors who held shares between September 12, 2025, and February 17, 2026, and says the stock had fallen more than 75% from the IPO price to below $7 before a small rebound on Thursday.

Gemini did post a better-than-expected top-line result in the fourth quarter. Revenue rose 39% to $60.3 million, but losses widened sharply, and the company reported a full-year 2025 net loss of $582.8 million. Shares closed Thursday at $6.01, up 0.81%, then climbed again in after-hours trading to about $6.67.

Meanwhile, internal changes kept piling up. Gemini cut about a quarter of its workforce, pulled back from the UK, the EU, and Australia, and saw several top executives leave during the restructuring. Nifty Gateway was also shut down in February. For investors behind the case, all of that undercuts the growth picture laid out at listing.