New York Attorney General Letitia James sued Coinbase Financial Markets and Gemini Titan over prediction market products that the state says violated New York law by enabling unlicensed event-contract trading. The complaint alleges the products were offered in New York, including to users aged 18 to 20, and earlier reporting said the contracts were tied to sports, entertainment, and election events. The state has also argued that prediction market contracts linked to sports and entertainment may conflict with state gambling rules, reflecting broader state-level scrutiny of event-based trading products. Coinbase has moved the case to federal court, arguing the lawsuit raises federal law issues and that the event contracts should not be treated solely as a matter of New York state gambling-license enforcement.