Crypto exchange Gemini is facing a class action lawsuit from shareholders who claim the company illegally failed to disclose its pivot into prediction markets—and overstated the viability of its struggling core business.

The federal suit, filed this week in the Southern District of New York, alleges Gemini and its founders, Tyler and Cameron Winklevoss, materially misled investors in the build-up to taking the company public last fall.

Gemini “overstated the viability of its core business as a crypto platform” and “overstated its commitment to and/or the viability of growing its business through expanding its international operations,” the lawsuit claims.

The shareholders further argue that Gemini withheld information that would have shown the company was poised for “an expensive and disruptive restructuring.” Indeed, in February, the exchange laid off over a quarter of its staff and fully exited Europe and Australia, saying that it planned to lean on AI to boost company efficiency.



That same day, the Winklevoss twins announced the company planned to make its new prediction market platform “front-and-center” for users. Plans for this significant pivot were also improperly concealed when Gemini went public months prior in September, the shareholders allege.

Gemini did not immediately respond to Decrypt’s request for comment on the case.

Since Gemini went public six months ago, the company’s stock (Nasdaq: GEMI) has lost nearly 85% of its value. In the same period, Bitcoin has shed some 40% of its price. Gemini shareholders insist the damage to Gemini’s stock has much to do with the company’s alleged failure to disclose the state of its businesses and its future plans.

“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 complaint reads.

On Thursday, Gemini shares rose nearly 7% in after-hours trading after the company reported more stable revenue streams in 2025, and signaled success from its cost-cutting efforts—though it also reported a $582.8 million net loss for 2025.

Gemini’s stock is down 5.8% on the day Friday, as of this writing, to $5.66.

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