%{{tag.tag}} {{articledata.title}} {{moment(articledata.cdate)}} @{{articledata.company.replace(" ","")}} comment Cryptoprowl / New York State Attorney General Letitia James has filed lawsuits against crypto exchanges Coinbase Global (NASDAQ: $COIN ) and Gemini (NASDAQ: $GEMI ), accusing them of providing illegal gambling services through their prediction markets. In a statement, James’s office said Coinbase and Gemini have run afoul of New York laws through prediction market platforms that enable people to bet on sports and other real-world events. The New York Attorney General is seeking fines, restitution, and for Coinbase and Gemini to forfeit profits that the state says are illegal. "Gambling by another name is still gambling, and it is not exempt from regulation under our state laws and Constitution," said James in a news release. James’ office has taken particular issue with Coinbase and Gemini allowing people between the ages of 18 and 21 to place bets on its prediction market platform. New York State law requires people to be 21 years old to participate in sports betting and gambling. The state is seeking a minimum of $2.2 billion U.S. in damages from Coinbase Global and $1.2 billion U.S. from Gemini, according to court documents. In a statement on social media, Coinbase said that prediction markets are federally regulated by the Commodity Futures Trading Commission (CFTC) and not individual states. “Coinbase will continue to fight for the federal oversight of these markets that Congress intended,” said the crypto trading platform on X. Earlier this year, Coinbase launched its prediction market offering across the U.S. through the platform Kalshi, which is regulated by the CFTC. Late last year, Gemini entered the prediction market arena with its platform called Gemini Titan. Prediction markets have been caught in regulatory limbo, with the CFTC saying that those platforms belong under federal government jurisdiction. However, states such as New York say the platforms are violating local gaming and gambling laws, particularly related to sports betting. COIN stock has declined 16% so far in 2026. GEMI stock has fallen 86% since it went public last September.