NY Attorney General Letitia James is suing Polymarket US If she wins it's the end for Polymarket she wants : - Polymarket blocked from operating in NY - all gains forfeited !! (as in they refund their lifetime profits) - full refund of user losses - fines up to 3× their total profits Polymarket operate under NY jurisdiction, so even if they moved they would still have to pay the fines, which would mean bankruptcy. The crux of the issue is the legal classification of Polymarket : > CTFC believes Prediction Markets are selling financial derrivates, therefor they must be regulated by them at the federal level > NY believes they are a sports gambling platform, therefore they should regulated them at the state level There is an argument to be made especially following Polymarket's pivot towards Sports but this is first and foremost a politically motivated prosecution Letitia James is a known anti-crypto Democrat that already sued KuCoin, Celsius, Gemini and Tether Polymarket has the cover of the Trump aligned CFTC for now but they will be in trouble when democrats take back power. especially considering the wash trading accusation recently brought forward by @TheFatMbappe that could be used against them They need to IPO fast before Republicans lose power if they want to exit on top