Gemini faces a class-action lawsuit filed March 19 in Manhattan federal court, alleging the crypto exchange misled investors during its September IPO.
Plaintiff Marc Methvin claims Gemini’s IPO documents portrayed the company as a growing exchange focused on expanding its user base and global presence. Yet by February, co-founders Tyler and Cameron Winklevoss announced a strategic pivot to prediction markets-dubbed “Gemini 2.0”-while exiting the EU, UK, and Australia.
The stock debuted near $28 on Nasdaq, briefly hit $40, then plunged over 80% to around $6 by mid-March, touching a low of $5.82 on February 20.
The suit also cites a 25% workforce reduction and the simultaneous departure of the CFO, COO, and CLO-all while operating expenses rose 40%, according to court filings.
Investors seek damages for buying shares at allegedly inflated post-IPO prices and demand a jury trial.