IPO Dreams Shattered! Gemini Hit with Class Action Lawsuit for "Misleading Investors," Stock Price Plummets 80% with 25% Layoffs and Exit from Multiple Countries

Founded by the Winklevoss brothers, the cryptocurrency exchange Gemini is now facing its biggest crisis since going public. A class-action lawsuit filed Wednesday in the Southern District of New York alleges that Gemini provided false information in its 2025 IPO documents, misleading investors about its international expansion. As its stock plummeted 80% and annual losses widened to $580 million, Gemini announced it would lay off a quarter of its staff and significantly cut back its global operations, raising serious concerns about its ongoing viability.

(Background: Gemini founders Winklevoss brothers sold $130 million worth of Bitcoin! Once held 108,000 BTC, sold 92% over ten years)

(Additional context: Gemini announced it will fully exit the UK, European Economic Area, and Australia, with users required to withdraw assets by April 6)

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• Stock Price Plunges 80%: From $32 to Single Digits
• From Expansion to Retreat: Announced 25% layoffs and exit from UK and European markets
• Winklevoss Brothers Once Again in Legal Trouble

Once a high-flying IPO, the cryptocurrency exchange Gemini is now at the center of legal and regulatory scrutiny. On March 20 Taipei time, foreign media reported that Gemini and its executives (including Tyler and Cameron Winklevoss) have been sued in the Southern District of New York.

The core allegation is that Gemini, in its September 2025 IPO prospectus and subsequent disclosures, disseminated false or incomplete business strategy information, causing investors to suffer huge losses by believing in its growth potential.

Stock Price Plunges 80%: From $32 to Single Digits

Gemini’s stock performance is the most painful complaint from investors. In September 2025, the company listed on Nasdaq, closing its first day at $32. However, by this Thursday, its stock had crashed over 80% in just six months, closing at $6.01.

Plaintiffs point out that Gemini deliberately created a positive image of “focusing on global expansion and user growth” at the IPO, but in reality, internal management and international regulation faced numerous obstacles.

From Expansion to Retreat: Announced 25% layoffs and exit from UK and European markets

Even more shocking is Gemini’s “about-face” in operational strategy. The lawsuit mentions that, contrary to the international vision emphasized in its IPO documents, Gemini has announced several aggressive cutbacks:

• Mass layoffs: Announced to cut about 25% of its workforce to cope with rising costs.
• Exiting key markets: Fully withdrawing from multiple international markets including the UK, EU, and Australia, which is the opposite of its initial “expanding international footprint” claim.
• Financial losses: According to the latest disclosures, Gemini’s net loss for 2025 reached $582.8 million, a significant increase from the $158 million loss in 2024.

Winklevoss Brothers Once Again in Legal Trouble

Although Gemini’s revenue grew 39% year-over-year to $60.3 million in Q4 2025, this modest growth is insufficient to offset long-term structural costs and legal expenses. Market analysts suggest that this lawsuit could further tighten Gemini’s funding chain and impact its compliance operations in the U.S.

Gemini has not yet issued further comments on the lawsuit, but it has undoubtedly sounded an alarm for the 2026 crypto IPO wave: without sufficient regulatory transparency, even top-tier exchanges are not immune to harsh scrutiny from capital markets.