Gemini hit with investor lawsuit over strategy shift, stock slump as losses widen and layoffs mount

Gemini has been hit with a class-action lawsuit in New York accusing the company and executives, including Tyler and Cameron Winklevoss, of misleading investors regarding its business strategy before and after its September 2025 Initial Public Offering (IPO). The suit seeks damages for investors who bought shares during the IPO through mid-February 2026, as Gemini's stock has since fallen over 80% from its debut price.

The core of the complaint centers on Gemini's early February announcement of its "Gemini 2.0" strategy, which prioritized a prediction market product while exiting markets like the UK, EU, and Australia, and cutting 25% of its workforce. Plaintiffs argue that offering documents falsely portrayed the exchange as expanding internationally and failed to disclose this impending strategic overhaul.

This legal challenge coincides with Gemini reporting widening net losses, reaching $140.8 million in Q4 2025 and $582.8 million for the full year 2025, despite a 39% rise in Q4 revenue. Furthermore, the Winklevoss twins noted that workforce reductions have reached about 30% since the start of the year, highlighting internal disruption alongside the stock's significant decline.

(Source：The Block)