New York is suing Coinbase and Gemini, accusing their prediction market platforms of being illegal gambling operations. Attorney General Letitia James’ lawsuit seeks to halt their operations in the state unless they obtain licenses from the Gaming Commission. The suit contends these unregulated platforms expose young people to addictive services without proper safeguards, unlike licensed casinos and sportsbooks which are heavily taxed by the state. This action follows similar arguments from other prediction market companies claiming federal preemption over state regulation.
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Nineteen-year-old Matthew Lane pleaded guilty to hacking PowerSchool, a leading education technology company, and stealing the personal data of 62 million children. Lane gained access using a stolen employee password, resulting in the largest known breach of American children’s data. His plea agreement includes a prison sentence of no less than nine years and four months for charges including obtaining information from a protected computer and aggravated identity theft. While Lane admitted to the hack, the extent of his involvement in subsequent extortion attempts remains unclear.
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Coinbase revealed a data breach resulting from compromised overseas support agents who were bribed by cybercriminals. The attackers obtained sensitive customer data, including names, addresses, and partial financial information, to conduct social engineering attacks. While no passwords or funds were compromised, Coinbase estimates remediation costs could reach $400 million. The company is cooperating with law enforcement and offering a $20 million reward for information leading to arrests, refusing to pay the extortion demand. Despite this incident, Coinbase maintains its commitment to enhancing security measures and customer reimbursement.
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John Q. Hosedrinker