By Jonathan Stempel
NEW YORK, March 19 (Reuters) – Gemini Space Station and its billionaire founders Cameron and Tyler Winklevoss were sued by shareholders who said they were defrauded about the cryptocurrency exchange’s business prospects, and suffered losses as a strategy shift, mounting losses, job cuts and executive departures caused the stock price to fall.
In a proposed class action complaint filed on Wednesday night in Manhattan federal court, shareholders said Gemini made false and misleading statements in marketing documents for its September 11, 2025 initial public offering by overstating the viability of its crypto platform and its ability to grow internationally.
They also said the New York-based company didn’t disclose it was poised for an “abrupt corporate pivot” to focus on prediction markets, where users wager on the likelihood of future events.
Shareholders said Gemini’s problems surfaced in February when the company said it would cut about 25% of its workforce and wind down European Union, U.K. and Australian operations; announced it was “parting ways” with its chief operating officer, chief financial officer and chief legal officer; and projected a 2025 net loss of as much as $602 million, or $267 million before interest, taxes, depreciation, amortization and other adjustments.
The share price fell after those announcements to below $7, more than 75% below the $28 IPO price.
Gemini did not immediately respond on Thursday to requests for comment.
The lawsuit seeks unspecified damages for shareholders between September 12, 2025 and February 17, 2026.
Tyler Winklevoss is Gemini’s chief executive, and Cameron Winklevoss is its president. The identical twins were each worth $2.7 billion as of Wednesday, Forbes magazine said.
(Reporting by Jonathan Stempel in New York, Editing by Franklin Paul)
