New York Attorney General Letitia James has sued Coinbase and Gemini, alleging that their prediction market products constitute illegal gambling under state law.
What New York is alleging against Coinbase and Gemini
The lawsuit, filed by the New York Attorney General’s office, targets both major crypto exchanges over their event-based prediction market offerings. The state argues these products function as illegal gambling operations rather than legitimate financial instruments.
Prediction markets allow users to place wagers on the outcome of real-world events, from election results to economic data releases. New York’s position is that these contracts cross the line from trading into gambling, a distinction that carries significant legal consequences for the platforms offering them.
A court filing against Gemini Titan LLC was submitted alongside the announcement, outlining the state’s legal arguments. Coinbase faces a parallel action over its own prediction market product line.
Read more: coinmarketcap.com
Source: CRYPTO WORLD NETWORK NEWS
