Gemini, the cryptocurrency exchange, has cut approximately 30% of its workforce to roughly 445 employees while deploying artificial intelligence tools to improve operational efficiency, according to reporting on the matter. The downsizing comes as the company faces a class action lawsuit alleging it misled investors regarding its business strategy both before and after its 2025 IPO.
The legal challenge underscores sharp deterioration in investor confidence since Gemini's market debut. The company's stock closed at $32 on the first trading day in September but has since collapsed more than 80% to approximately $6, according to The Block. The dramatic decline mirrors broader pressures facing cryptocurrency platforms navigating regulatory scrutiny and market volatility.
The combination of aggressive cost-cutting through workforce reductions and automation, paired with shareholder litigation, suggests Gemini is attempting to stabilize operations while defending against allegations of disclosure failures tied to its public market entry. The outcome of the lawsuit could have material implications for how cryptocurrency companies communicate business fundamentals to investors during IPO processes.