TLDR:
- Gemini’s stock has collapsed over 80% from its $32 IPO price, closing at $6.01 on Thursday after the lawsuit was filed.
- A New York class-action suit alleges Gemini hid a major strategy overhaul from investors ahead of its September 2025 IPO.
- Gemini’s net loss widened to $140.8 million in Q4 2025, with full-year losses reaching $582.8 million for the year.
- Under Gemini 2.0, the firm is exiting the UK, EU, and Australia markets while cutting roughly 30% of its total workforce.
Gemini is facing a class-action lawsuit filed in New York federal court. The complaint accuses the cryptocurrency exchange and its founders of misleading investors around its 2025 initial public offering.
Plaintiffs allege that Gemini concealed a major strategic overhaul before going public. The company’s stock has since dropped over 80% from its IPO price.
Meanwhile, Gemini reported widening losses and confirmed workforce cuts reaching approximately 30% since the start of 2026.
Lawsuit Targets IPO Disclosures and Executive Departures
The complaint was filed on Wednesday in the U.S. District Court for the Southern District of New York. It names Gemini co-founders Tyler and Cameron Winklevoss as defendants, alongside the company. The suit covers investors who purchased shares during the September 2025 IPO through mid-February 2026.
Plaintiffs argue that Gemini’s IPO offering documents painted a misleading picture of the business. Specifically, the documents portrayed Gemini as a growing exchange focused on expanding its user base and international reach. However, the company allegedly withheld plans for a major strategic change at that time.
The complaint also points to the departure of several senior executives as evidence of internal disruption. Those who left include Gemini’s chief financial officer, chief operating officer, and chief legal officer. These exits occurred around the same period as the strategic pivot announcement.
In addition, the lawsuit ties the stock’s sharp decline to these undisclosed plans. Gemini’s stock opened at $32 on its Nasdaq debut and has since fallen to around $6. That represents a decline of more than 80% in just a few months.
Gemini 2.0 Strategy Introduces Prediction Markets and Market Exits
In early February 2026, Gemini announced its “Gemini 2.0” strategy, which marked a clear shift from its earlier direction.
The company said it would focus on building a prediction market product going forward. This move came as a surprise to many investors who expected continued exchange growth.
As part of the restructuring, Gemini also announced it would exit key international markets. These include the United Kingdom, the European Union, and Australia — regions it had previously targeted for expansion. The decision reversed the international growth narrative that featured in its IPO materials.
Alongside the strategic changes, Gemini disclosed its fourth-quarter 2025 financial results. Revenue rose 39% year-over-year to $60.3 million, though net losses widened sharply to $140.8 million from $27 million a year earlier.
In a shareholder letter, Tyler and Cameron Winklevoss confirmed that the workforce reduction has now reached “roughly 30% since the start of the year.” For the full-year 2025, net losses reached $582.8 million compared to $158.5 million in 2024.
Furthermore, Gemini’s trading volume remains far below major competitors. In February, Gemini recorded approximately $2.14 billion in monthly exchange volume.
By comparison, Coinbase posted $68.99 billion and Binance reported $334.86 billion during the same period. The Block has reached out to Gemini for comment on the lawsuit.
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