Gemini Faces Class-Action Suit Over Prediction Market Pivot, Plummeting Stock Price
Gemini, a crypto exchange, is facing a class action lawsuit from shareholders who allege the company and its founders, Tyler and Cameron Winklevoss, misled investors by overstating the strength of its core crypto business and failing to disclose a planned shift toward prediction markets. The lawsuit, filed in federal court, claims Gemini concealed impending restructuring, including significant layoffs and its exit from Europe and Australia, which occurred shortly after it went public in September. Shareholders argue this lack of transparency contributed to the company’s declining stock price—down nearly 85% since its IPO—beyond general declines in the crypto market. The suit also states that Gemini's move to make prediction markets central to its offerings was improperly withheld from investors. Gemini reported efforts to stabilize revenue and control costs but announced a $582.8 million net loss for 2025. Despite a brief stock uptick on positive revenue news, shares remain significantly down.
