New York has sued Coinbase Financial Markets and Gemini Titan for alleged state law violations, extending the state’s aggressive campaign against major crypto platforms.

New York state has filed lawsuits against Coinbase Financial Markets and Gemini Titan, accusing the crypto platforms of violating the state’s executive and administrative laws, according to newly filed court records.

New York escalates crackdown on Coinbase and Gemini

The complaints, reported by MarketScreener, come as both companies are already grappling with overlapping federal and state actions, including an SEC enforcement case against Coinbase over alleged unregistered securities trading and a multi-million dollar settlement Gemini reached with New York’s attorney general over its Earn product.

While the latest filings focus on state law breaches rather than federal securities rules, they continue a pattern in which New York regulators argue that leading exchanges failed to live up to obligations attached to operating in one of the world’s most tightly policed financial jurisdictions.

Coinbase, Gemini and New York’s long memory

Coinbase has faced mounting legal pressure on multiple fronts, from the SEC’s 2023 civil suit to a recent derivative action accusing senior executives of neglecting compliance duties after the exchange’s 2021 listing.

In that shareholder case, the complaint cited a prior $100 million settlement with the New York State Department of Financial Services over AML deficiencies, as well as a separate $5 million penalty from New Jersey securities regulators, to argue there was “foreseeable regulatory risk” management failed to curb.

New York has also tangled repeatedly with Gemini, with Attorney General Letitia James securing a $50 million recovery for Earn customers in 2024 and banning the company from running any crypto lending programs in the state after finding it misled investors on counterparty risk at Genesis.

Although details of the new Coinbase Financial Markets and Gemini Titan complaints have not yet been fully disclosed, legal analysts say the cases fit a broader trend of state watchdogs using executive and administrative law to police crypto activity, especially when federal enforcement is seen as slow or fragmented.

Earlier this year, for example, a New York lawsuit alleged Coinbase helped enable years of illegal online gambling by a minor through crypto transactions tied to offshore casino Stake.com, illustrating how state authorities are increasingly treating exchanges as gatekeepers in adjacent risk domains.

The fresh actions against Coinbase and Gemini now add to an already dense docket of regulatory and civil disputes, ensuring that legal and compliance overhangs will remain central to how investors, counterparties and policymakers assess both firms’ roles in the U.S. crypto market.