New York Attorney General sues Coinbase and Gemini, alleging that prediction markets constitute "illegal gambling"

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Odaily Planet Daily reported that Letitia James has filed lawsuits against Coinbase and Gemini, accusing them of offering “subtle gambling” services through prediction market platforms, in violation of New York State law.

Regulators believe that these event-based trading activities (such as sports and elections) are essentially gambling, especially raising questions about allowing users aged 18 to 21 to participate, while New York law sets the minimum age for sports betting at 21. Prosecutors are seeking hefty fines and recovery of proceeds, with claims against Coinbase totaling at least $2.2 billion and against Gemini at least $1.2 billion.

The two companies have not yet responded officially, but Coinbase stated that prediction markets are regulated by the Commodity Futures Trading Commission, implying that their legality falls under federal jurisdiction.

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