NY Attorney General Sues Coinbase and Gemini Over Prediction Markets
Letitia James claims prediction markets from both crypto exchanges amount to illegal gambling under New York law.
New York Attorney General Letitia James is going after two of crypto's biggest names. She filed lawsuits against both Coinbase Financial Markets and Gemini Titan on Tuesday, targeting their prediction market offerings.
The core allegation: these prediction markets are essentially illegal gambling dressed up in crypto clothing. James claims they violate New York state gambling laws.
Both companies trade publicly — Coinbase under COIN.O and Gemini under GEMI.O — making this a high-profile regulatory clash with real market implications.
Prediction markets have exploded in popularity across the crypto industry, letting users bet on outcomes of real-world events. But state regulators increasingly see them as gambling platforms operating without proper licensing or oversight.
The lawsuits signal New York isn't backing down from its historically aggressive stance on crypto regulation. Both companies now face a serious legal fight on their home turf.