On March 18, shareholders filed a class-action lawsuit against the cryptocurrency exchange Gemini. The plaintiffs accuse the platform, its founders Tyler and Cameron Winklevoss, and top executives of misleading investors during and after the IPO.

The complaint states that in November 2025, the platform's management publicly reported on its progress in international expansion and plans to launch the exchange in "key global markets." The prospectus referred to the platform as the company's main product.

However, shortly thereafter, the Winklevoss twins cut 25% of the workforce and announced their exit from the EU, UK, and Australia. Concurrently, the exchange radically changed its business model, shifting focus to prediction markets. In December, Gemini launched the Gemini Predictions platform, receiving approval from the CFTC.

This strategic shift was accompanied by an internal crisis: the company lost its CFO, COO, and chief legal officer. Amid this turmoil, operating expenses surged by about 40%, while the stock price plummeted over 75% in the past six months.

The plaintiffs claim that these actions by management resulted in significant financial losses.

Source: Yahoo Finance.

Investors are seeking a jury trial and compensation, emphasizing that they purchased Gemini shares at "artificially inflated prices."

The platform went public on Nasdaq in September 2025. The company issued 15.18 million Class A shares at $28—above the planned range of $24-26. The total funds raised amounted to $425 million.

Financial Position

On March 18, Gemini also shared its financial results for the fourth quarter of 2025. Revenue increased by 39% compared to the same period last year, reaching $60.3 million, surpassing analysts' expectations of $51.7 million.

The net loss was $140.8 million, compared to $27 million the previous year. For the entire year, losses totaled $585 million (up from $156.6 million in 2024).

In a letter to shareholders, Cameron and Tyler Winklevoss noted that the quarter was the strongest in terms of profit in three years, despite a decline in trading volumes. They attributed the revenue growth to "targeted work on the fee structure in the second half of the year."

The co-founders also commented on the layoffs, citing the active implementation of artificial intelligence:

"Today, AI is involved in over 40% of changes to our production code. In the near future, this figure will reach 100%. Not using neural networks at Gemini will soon be as strange as coming to the office with a typewriter instead of a laptop."

The Winklevoss twins added that they are "encouraged by the cryptocurrency-friendly policies of U.S. regulators." Therefore, this year the company will strengthen its presence specifically in the U.S.

As a reminder, in March, Crypto.com CEO Kris Marszalek announced a 12% workforce reduction—about 180 employees. The main reason was the implementation of artificial intelligence across all processes.