‘Weak earnings’ Gemini faces investor class-action lawsuit

The cryptocurrency exchange Gemini, which drew attention with its initial public offering (IPO) in the second half of last year, has reportedly become embroiled in a class-action lawsuit.

According to Cointelegraph, a crypto-focused media outlet, on the 20th (Korea time), a group of Gemini investors filed a class-action complaint in federal court in Manhattan, alleging the company provided misleading information to investors during the IPO process.

The plaintiffs claim that Gemini portrayed itself to investors at the time of the IPO as a growth-oriented exchange focused on expanding its user base and global footprint, but after listing it abruptly shifted to a prediction-market-centered business model.

Gemini listed on the Nasdaq in September last year. The share price surged to $40 shortly after listing, but has since tumbled to around $6 amid persistent weakness.

In particular, Gemini has moved this year to undertake large-scale restructuring and a business overhaul. In a shareholder letter released that day, Gemini said it cut about 30% of its total workforce through restructuring carried out since the beginning of this year. Key executives, including the chief operating officer (COO), chief financial officer (CFO), and chief legal officer (CLO), reportedly departed in the process. Gemini has also withdrawn from the U.K., the European Union (EU), and the Australian market.