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Attorney General of the State of New York Letitia James is suing crypto exchanges Coinbase and Gemini, classifying their prediction market offerings as unlicensed gambling operations.
What's the Scoop?
- New Lawsuits: NY Attorney General Letitia James has filed parallel lawsuits against
Coinbase and Gemini, alleging the exchanges’ prediction market products amount to unlicensed gambling under state law. The near-identical complaints target their sports-based markets for "offering what is quintessentially wagering under the guise of 'event contracts' on a 'prediction market.'" - Requested Relief: Among other remedies, both complaints seek to permanently enjoin Coinbase and Gemini from operating an unlicensed “gambling business” in New York without approval from the State Gaming Commission. The suits also pursue restitution, disgorgement, damages, and penalties – including fines of up to $100k for each instance of offer or attempting to offer unauthorized sports wagering in the state.
