New York Attorney General sues Coinbase and Gemini, accusing them of illegal gambling for predicting markets

Letitia James has filed a lawsuit against Coinbase and Gemini, accusing them of providing "disguised gambling" services through their prediction market platforms, in violation of New York state law.

Regulators believe that such trades based on event outcomes (such as sports and elections) essentially fall under gambling activities, particularly questioning the participation of users aged 18 to 21, while New York law sets the minimum age for sports betting at 21. The prosecution is seeking hefty fines and the recovery of profits, with claims of at least $2.2 billion against Coinbase and at least $1.2 billion against Gemini. The two companies have not officially responded, but Coinbase has indicated that prediction markets are regulated by the Commodity Futures Trading Commission, suggesting that their legality falls under federal jurisdiction.