Crypto exchange Gemini is facing a class action lawsuit that targets its 2025 IPO disclosures and post-listing statements. Filed in the U.S. District Court for the Southern District of New York, the case alleges that Gemini and senior executives gave false or incomplete information that misled investors about the company’s international expansion strategy and growth outlook.
The complaint names Gemini along with Tyler Winklevoss and Cameron Winklevoss. At the center of the case is the claim that the company presented itself during the IPO as a business focused on global expansion and user growth, while internal management issues and regulatory hurdles in overseas markets were already weighing on that plan.
Shares dropped from $32 to $6.01 within months
The stock’s decline is one of the clearest markers in the lawsuit. Gemini listed on Nasdaq in September 2025, and its shares closed at $32 on the first trading day. By Thursday this week, the stock had fallen to $6.01, a drop of more than 80% in roughly half a year.
Plaintiffs argue that the collapse was tied to a widening gap between what investors were told and what the company was actually facing. Gemini’s latest disclosures showed a 2025 net loss of $582.8 million, compared with a 2024 net loss of $158 million. That sharp increase in losses has added to scrutiny over the company’s business model after going public.
Retrenchment replaced the expansion story
The lawsuit also points to a series of cutbacks that ran against Gemini’s IPO narrative. The company announced plans to cut about 25% of its workforce and withdraw from several international markets, including the UK, the EU, and Australia. Those moves sit in direct contrast with the expansion message highlighted in its listing materials.
Gemini did post some top-line growth. According to the report, fourth-quarter 2025 revenue rose 39% year over year to $60.3 million. Even so, that increase was not enough to offset mounting losses and legal expenses. As of publication, Gemini had not issued any additional comment on the lawsuit.