Cryptocurrency exchange Gemini sued over post-IPO strategic shift and stock price decline.

PANews reported on March 20th that, according to Cointelegraph, cryptocurrency exchange Gemini and its co-founders Tyler Winklevoss and Cameron Winklevoss are facing a class-action lawsuit from shareholders in New York. The lawsuit alleges that Gemini's statements in its September IPO filing were misleading, portraying itself as an exchange focused on expanding its user base and international business, but subsequently "abruptly shifted to a prediction market-centric business model," causing its stock price to plummet by over 80% from its IPO price of $28 to approximately $6.

In early February, the Winklevoss brothers announced a shift to the "Gemini 2.0" prediction market, while simultaneously laying off 25% of their workforce and withdrawing from the EU, UK, and Australian markets. That same month, the company's CFO, COO, and CFO resigned. The plaintiffs requested a jury trial and sought damages. Gemini reported fourth-quarter revenue on Thursday that increased by 39% year-over-year to $60.3 million.