New York AG Sues Coinbase and Gemini for Unlicensed Prediction Markets
- New York Attorney General Letitia James filed lawsuits against Coinbase and Gemini on April 21.
- The exchanges are accused of operating unlicensed prediction markets in violation of New York State Gaming Commission regulations.
- Both platforms allegedly allowed users aged between 18 and 20 to wager, contravening the state’s legal gambling age of 21.
- James seeks triple civil fines, restitution for customers, and a ban on college campus marketing by both firms.
The legal action marks a significant state-level enforcement against major cryptocurrency platforms offering prediction markets without proper licensing. The attorney general argues these activities qualify as gambling under New York law due to outcomes being determined by chance or external factors.
This lawsuit highlights regulatory challenges faced by cryptocurrency exchanges in adhering to state laws, particularly regarding age restrictions and licensing requirements for gambling-related activities. ( Source )
