0
0
News

New York AG Sues Coinbase and Gemini, Classifies Prediction Markets as Illegal Gambling Operations

New York’s top prosecutor is taking aim at crypto prediction markets, escalating regulatory pressure on major exchanges.
0
0
Apr 21, 2026 • 1 min read

Attorney General of the State of New York Letitia James is suing crypto exchanges Coinbase and Gemini, classifying their prediction market offerings as unlicensed gambling operations.

What's the Scoop?

  • New Lawsuits: NY Attorney General Letitia James has filed parallel lawsuits against Coinbase and Gemini, alleging the exchanges’ prediction market products amount to unlicensed gambling under state law. The near-identical complaints target their sports-based markets for "offering what is quintessentially wagering under the guise of 'event contracts' on a 'prediction market.'"
  • Requested Relief: Among other remedies, both complaints seek to permanently enjoin Coinbase and Gemini from operating an unlicensed “gambling business” in New York without approval from the State Gaming Commission. The suits also pursue restitution, disgorgement, damages, and penalties – including fines of up to $100k for each instance of offer or attempting to offer unauthorized sports wagering in the state.
Source: New York State Unified Court System

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

Published in Bankless

There’s a revolution in the world of money. Ethereum, Bitcoin, crypto, open finance, DeFi—a bankless revolution. And you want part of it.