The Nevada Gaming Control Board filed a civil enforcement action against Coinbase Global Inc.
The action targets Coinbase for offering unlicensed prediction markets launched in collaboration with Kalshi. The board seeks a temporary restraining order to halt these operations.
Coinbase stock tumbled 4.36% on Tuesday, closing at $179.66. This marks the eleventh consecutive session of losses for the company.
Coinbase also confirmed an insider security breach that occurred in December. A contractor improperly accessed sensitive data belonging to about thirty clients. The compromised data included names, contact information, and wallet balances.
These developments increase pressure on the company ahead of its earnings announcement on February 12.