The New York attorney general on Tuesday sued Coinbase and Gemini Titan, two cryptocurrency giants that have expanded into online betting, accusing them of illegally running gambling operations in the state.
Letitia James, the attorney general, filed two lawsuits in State Supreme Court in Manhattan, saying the two companies recently expanded into prediction markets, allowing their users to gamble on sports and other events. However, the office says neither company was ever licensed with the New York State Gaming Commission and allowed people under the age of 21, the legal gambling age in the state, to participate.
In a statement, Ms. James said “Gambling by another name is still gambling.”
“Gemini and Coinbase’s so-called prediction markets are just illegal gambling operations, exposing young people to addictive platforms that lack the necessary guardrails,” Ms. James said.
Paul Grewal, the chief legal officer at Coinbase, said on X that “prediction markets are federally regulated national exchanges.” He added that “Coinbase will continue to fight for the federal oversight of these markets that Congress intended.”