ChainThink reports that on March 20, according to The Block, Gemini has been subjected to a class-action lawsuit, which was filed this Wednesday in the U.S. District Court for the Southern District of New York. The complaint alleges that Gemini and its co-founders, Tyler Winklevoss and Cameron Winklevoss, made false or incomplete statements regarding the company’s business strategy in its offering documents and subsequent disclosures surrounding its September 2025 IPO. The lawsuit seeks damages on behalf of investors who purchased shares between the IPO and mid-February 2026.
Gemini went public on Nasdaq in September 2025, closing its first day at $32, and has since declined more than 80%, closing at $6.01 on Thursday. The plaintiffs allege that the prospectus portrayed Gemini as a growth-oriented crypto platform focused on expanding its monthly active users and international markets, but the company failed to disclose that it was already preparing for a major strategic transformation.
In early February this year, Gemini announced its "Gemini 2.0" strategy, shifting its strategic focus toward prediction market products, laying off approximately 25% of its workforce, and exiting markets such as the UK, EU, and Australia—directly contradicting its previously stated international expansion goals. The complaint also cites the sequential departures of multiple executives, including the CFO, COO, and General Counsel, as evidence of internal turmoil.