Gemini faced a securities class action lawsuit filed by investors in the U.S. District Court for the Southern District of New York on March 18. According to the complaint, Gemini overstated its core cryptocurrency trading business and international expansion prospects in its IPO and subsequent disclosures, and failed to adequately disclose potential restructuring risks the company might face. The company subsequently pivoted to prediction markets, cut 25% of its workforce, exited the UK, EU, and Australian markets, and disclosed the departure of multiple executives, which led to consecutive stock price declines. The plaintiffs claim that Gemini and multiple executives violated U.S. securities laws and seek damages on behalf of IPO investors and investors who purchased the company's securities between September 12, 2025 and February 17, 2026.