Crypto exchange Gemini is facing a class action lawsuit in New York, alleging it misled investors during and after its IPO.
Key points:
- Plaintiffs claim Gemini and its co-founders, Tyler and Cameron Winklevoss, misrepresented its business strategy, portraying the company as a growing crypto exchange focused on global expansion.
- After the IPO, Gemini pivoted to a prediction market model, cut 25% of its staff, and exited key international markets, including the UK, EU, and Australia.
- Investors allege these shifts caused shares, initially priced at $28, to fall, leading to losses tied to allegedly inflated IPO valuations.
- The lawsuit seeks a jury trial and compensation for shareholders who bought at “artificially inflated prices.”
Additional context:
- The firm also shut down its NFT platform, Nifty Gateway, and several executives departed amid cost-cutting.
- Despite this, Q4 revenue rose 39%, exceeding analyst expectations, and shares were up 0.81% in regular trading, jumping 5.8% in after-hours trading.
In short: Gemini is under legal scrutiny for its post-IPO business pivot, while the exchange continues to post strong revenue growth.
