Gemini Space Station, the crypto exchange run by Cameron and Tyler Winklevoss, is facing a new class-action lawsuit from investors in New York. Shareholders claim the company misled them about its business plans and growth prospects before and after its 2025 IPO. The lawsuit lands as Gemini’s losses widen, its stock slumps, and it cuts a large part of its workforce.
Investors Say Gemini Hid Strategy Pivot
The complaint, filed in a federal court in Manhattan, accuses Gemini and the Winklevoss twins of making false and deceptive claims in IPO marketing materials. Investors claim that the corporation exaggerated the strength of its main exchange business and its potential for global expansion. Additionally, they contend that Gemini failed to disclose that it was preparing to make a sudden transition to prediction markets following its listing.
Gemini presented itself as a regulated cryptocurrency exchange with aspirations to expand internationally, according to the document. Shareholders now claim the company “sold a false story” after it introduced Gemini 2.0, a platform centered on prediction markets where users place bets on actual occurrences. The proposed class covers investors who purchased shares between September 12, 2025, and February 17, 2026.
Stock Slides After Losses, Layoffs, and Exits
Gemini went public in September 2025 at $28 per share. By February 2026, the stock had dropped more than 75 percent and traded around $5.6 at the time of writing. The slide sped up after a series of harsh updates on the company’s finances and staffing.
Gemini announced in February that it would eliminate up to 200 jobs, or about 25% of its global staff, to reduce expenses and pursue profitability. Additionally, the corporation declared that it would continue to operate in Singapore and the United States while ceasing operations in the European Union, the United Kingdom, and Australia. Gemini announced the separation of its chief operating officer, chief financial officer, and chief legal officer that same day.
The company later recorded a full-year net loss of roughly $582.8 million, or $258 million before interest, taxes, depreciation, and amortization. It then predicted a net loss of up to $602 million in 2025, which heightened investor doubts about its ability to turn a profit. After the earnings announcement, shares saw a small increase in after-hours trading, but they remain well below the IPO price.
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