Coinbase and Gemini Accused of Illegal Gambling in N.Y. Lawsuits

Cryptocurrency exchanges Coinbase and Gemini have been accused by New York Attorney General Letitia James of illegally operating gambling platforms in the state.

The allegations arise after both companies expanded into prediction markets, which are subject to loose regulation.

Attorney General James stated that these firms were running gambling operations without proper authorization under New York law.

The lawsuits were announced on April 22, 2026, marking a significant regulatory challenge for the exchanges.

No casualties or disruptions have been reported in connection with the lawsuits.

However, the legal action highlights growing regulatory scrutiny of cryptocurrency platforms that venture into areas overlapping with gambling regulations.

This development is important as it underscores the increasing attention on the regulatory status of prediction markets within the cryptocurrency sector.

New York is a key jurisdiction for financial regulation in the United States, and actions taken here could influence broader industry practices.

The lawsuits come amid a wider trend of crypto firms exploring prediction markets, which allow users to bet on the outcomes of future events.

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