New York sues Coinbase and Gemini over prediction markets
6.6 Regulation New York sued Coinbase and Gemini for alleged illegal prediction markets, seeking penalties, profit forfeiture, and restrictions on underage users and campus marketing.
New York has filed lawsuits against Coinbase Financial Markets and Gemini Titan, alleging both companies operated illegal prediction markets in violation of state gambling laws. Authorities claim the platforms let users wager on sporting events, entertainment awards, and elections, classifying these activities as gambling under New York law. The lawsuits state that neither company obtained the required gaming license from the New York State Gaming Commission. Additionally, both platforms allegedly allowed users as young as 18 to participate, despite the legal minimum age being 21. Prosecutors seek strict penalties, including profit forfeiture, treble civil fines, and restitution for affected users. They also request court orders to restrict under-21 participation and limit marketing to college campuses. This action is part of a broader crackdown on unlicensed gambling and increases regulatory pressure on crypto platforms in New York.
