Why did the New York Attorney General sue Coinbase and Gemini?

The New York Attorney General sued Coinbase and Gemini for allegedly operating illegal gambling platforms within the state through their prediction markets.

What are the allegations against Coinbase and Gemini's prediction markets?

The companies are accused of running unlicensed gambling operations, allowing participation from individuals under 21, and failing to adhere to state gambling regulations.

What penalties is New York seeking from Coinbase and Gemini?

New York is seeking forfeiture of illegal profits, restitution for harmed consumers, and fines equivalent to three times the profits made from the alleged illegal actions.

Home / Crime and Justice / NY AG Sues Crypto Giants for Illegal Gambling

NY AG Sues Crypto Giants for Illegal Gambling

23 Apr

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Summary

AG James sued Coinbase and Gemini for illegal gambling operations.
Companies allegedly ran unlicensed prediction markets as betting platforms.
NY seeks forfeiture of illegal profits and consumer restitution.

NY AG Sues Crypto Giants for Illegal Gambling

New York Attorney General Letitia James has filed lawsuits against cryptocurrency firms Coinbase and Gemini, alleging they operated illegal gambling platforms in the state. The suits claim these companies recently expanded into prediction markets, which are viewed by the AG's office as unlicensed gambling operations.

James stated that these "prediction markets" expose young people to addictive platforms without necessary guardrails. The state is seeking to force the companies to forfeit illegal profits, compensate affected consumers, and pay triple the amount of their illicit gains in fines.