The New York Attorney General has filed charges against Coinbase and Gemini, alleging that prediction markets constitute "illegal gambling."

Odaily reports that Letitia James has filed a lawsuit against Coinbase and Gemini, accusing them of violating New York State law by providing "disguised gambling" services through their prediction market platforms. Regulators argue that such event-based transactions (like sports and elections) are essentially gambling, particularly questioning the allowance for users aged 18 to 21, while New York law stipulates a minimum age of 21 for sports betting. Prosecutors are seeking substantial fines and forfeiture of proceeds, including at least $2.2 billion from Coinbase and at least $1.2 billion from Gemini. Neither company has officially responded, but Coinbase stated that prediction markets are regulated by the Commodity Futures Trading Commission, implying that their legality falls under federal jurisdiction.