Gemini buyers are suing the crypto alternate and its billionaire founders, twins Cameron and Tyler Winklevoss, over the corporate’s “abrupt company pivot” that noticed it flip its focus from crypto buying and selling to prediction markets.
The IPO paperwork falsely portrayed the agency as centered on increasing its attain as a crypto alternate, the lawsuit mentioned. As an alternative, Gemini has shuttered operations within the UK, the EU and Australia. It has additionally laid off almost one-third of its workers, together with its chief working officer, chief monetary officer, and chief authorized officer.
“On account of defendants’ wrongful acts and omissions, and the precipitous decline out there worth of the corporate’s securities, plaintiff and different class members have suffered vital losses and damages,” the lawsuit says.
Because the September IPO, Gemini has seen its inventory lose 82% of its worth. In February, the agency projected that it could see a internet lack of as a lot as $602 million in 2025, or $267 million earlier than curiosity, taxes, depreciation, amortisation and different changes.
The lawsuit isn’t simply the most recent headache to befall the Winklevii. It additionally punctures an IPO craze that swept throughout the crypto trade over the previous 12 months.
Gemini was among the many crypto corporations that went public in 2025. Preliminary public choices for crypto corporations raised $3.4 billion final 12 months, in accordance to DefiLlama information.
Whereas a number of corporations have introduced public listings this 12 months, others are freezing these plans because of the market downturn, which has seen Bitcoin lose almost half its worth since October.
Crypto alternate Kraken confidentially filed for an IPO in November. Now, it’s reportedly placing its IPO plans on maintain.
Different crypto corporations have slashed jobs. Crypto.com, Messari, Optimism Labs, and, in fact, Gemini are amongst people who have lowered their headcount for the reason that begin of 2026.
Gemini’s IPO paperwork said the corporate was “predominantly centered” on increasing its enterprise by attracting new customers, growing buying and selling quantity, and including new belongings to its alternate, based on the lawsuit.
However these paperwork overstated Gemini’s enterprise prospects, the lawsuit continues. Slightly than comply with by on its said plans, the corporate launched an “costly and disruptive restructuring.”
In December, Gemini mentioned it could launch a prediction market. In a February weblog publish, the Winklevoss twins detailed their imaginative and prescient for the corporate’s future, dubbed “Gemini 2.0.”
The prediction market can be “extra entrance and heart in our expertise,” the corporate would lower jobs, and it could exit European and Australian markets.
