New York AG Sues Coinbase and Gemini Over Illegal Gambling Claims
New York Attorney General Letitia James sued cryptocurrency companies Coinbase and Gemini on Tuesday. She claims their prediction markets are illegal gambling operations that violate state laws.
New York Attorney General Letitia James filed lawsuits against major cryptocurrency exchanges Coinbase and Gemini on Tuesday, claiming their prediction market services violate state gambling laws.
Prediction markets let users bet on future events like election outcomes or sports results using cryptocurrency. James argues these platforms are just gambling operations disguised as financial markets.
"Gemini and Coinbase's so-called prediction markets are just illegal gambling operations, exposing young people to addictive platforms that lack the necessary guardrails," James said in a statement. "My office is taking action to protect New Yorkers and stop these platforms from violating the law."
The lawsuits target both companies for allegedly running these betting services without proper gambling licenses or age verification systems. This comes as prediction markets have grown popular on crypto platforms.
Both Coinbase and Gemini are major players in the cryptocurrency space, serving millions of users across the United States. The companies have not yet responded publicly to the lawsuits.
If you use these crypto platforms to bet on future events, you could lose access to these features. The lawsuit also highlights concerns about young people getting exposed to gambling without proper protections.
The lawsuits will work through New York courts. Watch for responses from Coinbase and Gemini, and potential changes to their prediction market services.
Was this article helpful?
0 people found this helpful