New York Attorney General Letitia James has filed lawsuits against cryptocurrency companies Coinbase and Gemini Titan, alleging that their prediction markets violate state gambling laws. According to multiple reports, the lawsuits were filed on Tuesday in Manhattan state court.
Key Takeaways
New York Attorney General Letitia James has filed lawsuits against cryptocurrency companies Coinbase and Gemini for violating state gambling laws through their prediction markets. According to James, these platforms allow users to bet on various events, including sports games and elections, without proper licensing or age restrictions.
- New York AG sues Coinbase and Gemini for illegal gambling operations.
- Prediction markets allow betting on sports, elections, and other events.
- Lawsuits seek forfeiture of profits, restitution to consumers, and fines.
- Coinbase argues prediction markets are federally regulated exchanges.
The Attorney General's office claims that Coinbase and Gemini's prediction markets fit the legal definition of gambling under New York State laws. James stated, "Gambling by another name is still gambling and it is not exempt from regulation under our state laws and Constitution." She further argued that these platforms expose young people to addictive betting without necessary safeguards.
The lawsuits allege that Coinbase and Gemini allowed users to wager on various events, including sports games such as the New York Knicks basketball games and college basketball matches. Neither company holds a license from the New York State Gaming Commission, which is required for legal gambling operations in the state.
The Attorney General seeks forfeiture of "illegal profits," restitution to consumers, civil fines equal to triple those profits, and restrictions on marketing these platforms on college campuses. Coinbase's Chief Legal Officer Paul Grewal responded that prediction markets are federally regulated national exchanges and that they will continue to fight for federal oversight.
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