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Shareholders have filed a lawsuit against the cryptocurrency exchange Gemini., 2026/03/20 12:31:03
A group of shareholders from the cryptocurrency exchange Gemini has filed a lawsuit, claiming that the trading platform misled investors prior to its initial public offering (IPO).
The plaintiffs, who submitted the lawsuit in the Southern District of New York, assert that Gemini presented itself as an emerging cryptocurrency exchange focused on expanding its user base and entering major international markets. However, Gemini subsequently made a drastic shift in its business model, redirecting its focus to the prediction market. This initiative has been named Gemini 2.0.
The investor plaintiffs contend that in the documents related to the IPO, Gemini made misleading statements and failed to disclose information regarding an imminent restructuring. The complaint indicates that the platform’s management may have overstated its ability to scale the business internationally.
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In February, Gemini shut down its non-fungible token (NFT) launch platform, Nifty Gateway, which it had acquired in late 2019. The exchange promised to continue supporting collectible tokens through the Gemini Wallet service, which was launched in August 2025.
Led by brothers Tyler and Cameron Winklevoss, Gemini conducted its IPO in September 2025, offering shares under the ticker GEMI on the Nasdaq stock exchange at a price of $28 each. Subsequently, the company reduced its workforce by 25% and exited the markets of the United Kingdom, European Union, and Australia. These changes resulted in a 75% decline in Gemini’s stock price compared to the IPO price, with the current value around $5.9.
The plaintiffs in the lawsuit claim they purchased shares of the exchange at artificially inflated prices. They estimate investor losses at $602 million. The plaintiffs are seeking compensation from Gemini for all individuals who acquired shares during the IPO from September 12, 2025, to February 17, 2026.
Recently, analysts from Arkham Intelligence discovered that the Winklevoss brothers transferred 1,750 bitcoins worth $130 million to the hot wallets of their platform. Over the past month, addresses associated with the Winklevosses have transferred more than 2,500 BTC to Gemini.
