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

According to Huoxun Finance, New York Attorney General Letitia James has filed a lawsuit against Coinbase and Gemini, accusing the two companies of violating New York State laws by providing "disguised gambling" services through their prediction market platforms. Regulators argue that such transactions based on the outcomes of events like sports and elections are essentially gambling activities, particularly questioning the platforms' allowance for users aged 18 to 21, while New York State law stipulates a minimum age of 21 for sports betting. Prosecutors are currently seeking substantial fines and the recovery of illegal proceeds, with at least $2.2 billion in damages against Coinbase and at least $1.2 billion against Gemini. Neither company has issued a formal response. Coinbase stated that its prediction market business is regulated by the U.S. Commodity Futures Trading Commission, implying that the legality of its business falls under federal jurisdiction.