Gemini is facing a proposed class-action lawsuit in Manhattan federal court alleging the crypto exchange misled investors during and after its September initial public offering. The suit, filed by shareholder Marc Methvin on Thursday, names Gemini, co‑founders Tyler and Cameron Winklevoss, and company executives.
The complaint says Gemini’s IPO filings depicted the firm as a growing crypto exchange focused on expanding its user base and international footprint, with the exchange described as its “core product.” Shares floated at $28 on the Nasdaq and briefly reached about $40, but the stock has since plunged more than 80% and traded around $6 at the time of the complaint.
Plaintiffs allege that in November Gemini publicly emphasized international expansion and progress in key global markets, only to announce in early February a sudden strategic shift to prediction markets branded “Gemini 2.0.” The company also said it would cut roughly 25% of its workforce and exit the EU, UK, and Australian markets. Around that time the firm’s CFO, COO, and chief legal officer departed, and the complaint says operating expenses rose by roughly 40%.
According to the suit, these abrupt changes caused significant losses for shareholders, with Gemini’s stock hitting an all‑time low of $5.82 by Feb. 20. The plaintiffs seek a jury trial and damages for investors who bought shares at what the complaint calls “artificially inflated prices” following the IPO.
Gemini reported on Thursday that Q4 revenue rose 39% year‑over‑year to $60.3 million, topping analyst expectations of $51.7 million. The litigation is the latest development following the company’s post‑IPO restructuring and executive departures.
