US Edition
New York sues prediction markets Coinbase and Gemini Titan, calls their operations gambling
Letitia James says the platforms ran unlicensed event contracts and seeks triple civil penalties, restitution and limits on users under 21.
- On Tuesday, New York Attorney General Letitia James sued Coinbase Financial Markets and Gemini Titan, alleging their prediction markets operate as unlicensed, illegal gambling platforms in violation of New York laws.
- James claims these platforms are "quintessentially gambling" because event outcomes remain outside bettors' control, failing to meet state licensing requirements for sports, election, and event wagering.
- The lawsuit alleges the companies expose New Yorkers under 21 to "serious financial and personal risk," with James seeking to recoup illegal profits plus civil penalties equal to triple those profits.
- Shares of Coinbase Global Inc. fell about 5% following the suit, though Coinbase Chief Legal Officer Paul Grewal stated the company will continue to fight for "federal oversight."
- This filing intensifies a wider conflict between state regulators and the Commodity Futures Trading Commission, which asserts "exclusive regulatory authority" over prediction markets, preempting state-level bans.
44 Articles
44 Articles
NY Sues Coinbase, Gemini Over Prediction Markets
New York is suing Coinbase and Gemini over unregulated and unlicensed prediction market platforms that the state contends are illegal gambling operations. Attorney General Letitia James' lawsuit, filed Tuesday in state court in Manhattan, seeks to bar the companies' platforms from operating in the state unless and until they obtain...
Associated Press News
New York sues Coinbase and Gemini, seeking to halt unlicensed prediction market businesses
New York is suing Coinbase and Gemini over unregulated and unlicensed prediction market platforms that the state contends are illegal gambling operations.
New York claims Coinbase, Gemini prediction markets violate gambling laws
New York Attorney General Letitia James (D) sued Coinbase and Gemini on Tuesday, accusing the two crypto companies of violating state gambling laws with their prediction markets. James argues that the platforms fall within the state’s definition of gambling and, as a result, are running afoul of state tax obligations and gambling restrictions on New...
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