New York authorities have sued Coinbase (COIN) and Gemini (GEMI) for violating state law, Unfolded reported, citing Reuters. It is understood to be related to the prediction market subsidiaries of Coinbase and Gemini violating gambling laws. The New York Attorney General issued a warning regarding violations of gambling laws in the prediction market in February. Coinbase launched a prediction market product for US users in January in cooperation with Kalshi, while Gemini Titan, a subsidiary of Gemini, obtained a Designated Contract Market (DCM) license from the Commodity Futures Trading Commission (CFTC) and has been operating its own platform. This lawsuit was filed amid escalating legal disputes between state gambling regulators and federal agencies such as the CFTC.
