Gemini Faces Shareholder Class Action Lawsuit Due to Post-IPO Strategic Shift and Sharp Stock Price Decline

Odaily News: Cryptocurrency exchange Gemini and its co-founders Tyler Winklevoss and Cameron Winklevoss are facing a shareholder class action lawsuit in New York.

The complaint alleges that Gemini described itself in its IPO filings as an exchange focused on expanding its user base and international operations, but subsequently shifted to a business model centered around prediction markets. This shift allegedly led to a stock price decline of over 80%, from $28 at the time of the IPO to approximately $6.

The report notes that in February of this year, the company announced it was advancing its "Gemini 2.0" prediction market strategy while laying off about 25% of its workforce and exiting the EU, UK, and Australian markets. That same month, the company's Chief Financial Officer, Chief Operating Officer, and Chief Legal Officer all resigned. The plaintiffs have requested a jury trial and are seeking damages. (Cointelegraph)