New York AG Sues Coinbase and Gemini Over Prediction Market Platforms

New York Attorney General Letitia James has filed lawsuits against two major cryptocurrency exchanges, Coinbase and Gemini, over their prediction market platforms. The state alleges that these platforms offered illegal gambling services tied to sports and elections, which violates New York law.

The complaint seeks at least $2.2 billion in penalties from Coinbase and $1.2 billion from Gemini for their alleged wrongdoing. The state also demands restitution for affected users and permanent injunctive relief to prevent further operations that violate New York's gambling statutes.

Coinbase has argued that prediction markets fall under federal oversight by the Commodity Futures Trading Commission (CFTC), but James claims that the platforms lacked required safeguards under state gaming rules. The dispute adds to ongoing court battles between the CFTC and several U.S. states over event-based trading platforms.