Gemini investors are suing the crypto exchange and its billionaire founders, twins Cameron and Tyler Winklevoss, over the company’s “abrupt corporate pivot” that saw it turn its focus from crypto trading to prediction markets.
The IPO documents falsely portrayed the firm as focused on expanding its reach as a crypto exchange, the lawsuit said. Instead, Gemini has shuttered operations in the UK, the EU and Australia. It has also laid off nearly one-third of its employees, including its chief operating officer, chief financial officer, and chief legal officer.
“As a result of defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the company’s securities, plaintiff and other class members have suffered significant losses and damages,” the lawsuit says.
Since the September IPO, Gemini has seen its stock lose 82% of its value. In February, the firm projected that it would see a net loss of as much as $602 million in 2025, or $267 million before interest, taxes, depreciation, amortisation and other adjustments.
The lawsuit isn’t just the latest headache to befall the Winklevii. It also punctures an IPO craze that swept across the crypto industry over the past year.
IPO boom interrupted
Gemini was among the crypto companies that went public in 2025. Initial public offerings for crypto firms raised $3.4 billion last year, according to DefiLlama data.
While several companies have announced public listings this year, others are freezing those plans due to the market downturn, which has seen Bitcoin lose nearly half its value since October.
Crypto exchange Kraken confidentially filed for an IPO in November. Now, it’s reportedly putting its IPO plans on hold.
Other crypto companies have slashed jobs. Crypto.com, Messari, Optimism Labs, and, of course, Gemini are among those that have lowered their headcount since the start of 2026.
Allegations
Gemini’s IPO documents stated the company was “predominantly focused” on expanding its business by attracting new users, increasing trading volume, and adding new assets to its exchange, according to the lawsuit.
But those documents overstated Gemini’s business prospects, the lawsuit continues. Rather than follow through on its stated plans, the company launched an “expensive and disruptive restructuring.”
In December, Gemini said it would launch a prediction market. In a February blog post, the Winklevoss twins detailed their vision for the company’s future, dubbed “Gemini 2.0.”
The prediction market would be “more front and center in our experience,” the company would cut jobs, and it would exit European and Australian markets.
Gemini’s stock debuted at $28. As of Friday, it was trading at $5.82.
Co-founders of Facebook, the Winklevoss twins have become power players in Washington, DC. They donated millions to Donald Trump’s reelection campaign and reportedly derailed the nomination of the president’s first choice to lead the Commodity Futures Trading Commission.
