New York AG Sues Coinbase and Gemini, Classifies Prediction Markets as Illegal Gambling Operations
New York’s top prosecutor is taking aim at crypto prediction markets, escalating regulatory pressure on major exchanges.
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.
Jack Inabinet
Jack Inabinet is a Senior Analyst with a passion for exploring the bleeding edge of crypto and finance. Prior to joining Bankless, Jack worked as an analyst at HAL Real Estate where he conducted market research and financial analysis for commercial real estate development and acquisition activities in the Seattle region. He graduated from the University of Washington’s Michael G. Foster School of Business.
