A lawsuit alleges a minor was recruited into illegal offshore crypto gambling through influencer-driven marketing and weak safeguards. The case targets both the platform operators and the financial systems that allegedly enabled the activity.
NEW YORK, April 14, 2026 /PRNewswire-PRWeb/ -- In a case that underscores the rise of influencer-driven gambling, The Schenk Law Firm filed a lawsuit last week in New York Supreme Court on behalf of a minor who was allegedly recruited into illegal offshore crypto gambling through online platforms and influencer-driven marketing (John Doe v. Stake.com, et al.).
Filed with national trial law firms Seeger Weiss LLP and Rafferty Domnick Cunningham & Yaffa as co-counsels, the lawsuit targets two defendants: the operators of Stake.com, a multi-billion-dollar entity and one of the largest offshore online gambling platforms in the world, and Coinbase, which allegedly served as the financial engine that enabled and sustained the gambling activity.
The complaint alleges offshore crypto gambling platforms are fueling what may be the next major youth addiction crisis using influencer marketing on platforms such as Twitch and Kick to reach millions of young users. Among the most prominent examples cited is global celebrity Drake, who is reportedly paid as much as $100 million per year to livestream gambling activity to a vast audience that includes minors.
"Stake.com operates illegally in every state in the United States. And yet over five million Americans visit the platform every month. The founders pay influencers hundreds of millions of dollars a year to target minors and livestream gambling on their respective media and gambling platforms," said Benjamin Schenk, a trial lawyer with The Schenk Law Firm, based in San Diego. "These entities operate without a moral anchor, run by people who see themselves as above borders, ethics and the law. It's time they answer to the American public."
According to the complaint, the plaintiff, who was 13 years old at the time, was able to open a Coinbase account and fund offshore gambling activity. Coinbase allegedly processed repeated cryptocurrency purchases and transfers to offshore gambling wallets despite multiple red flags, including its own 18+ age requirement, an identity mismatch on the account and a linked payment method labeled "High School Checking" within Coinbase's internal system.
The complaint further details an alleged sophisticated, three-pronged evasion strategy employed by Stake to circumvent U.S. restrictions, including the use of VPNs, mirror sites and a covert network operating through Discord that distributed pre-verified accounts to users, effectively bypassing age and identity verification safeguards.
As a result of his exposure to the platform, the minor's life was quickly derailed. He withdrew from college within a week, was subsequently diagnosed with compulsive gambling disorder and panic disorder and now attends Gamblers Anonymous meetings four times per week while living under his father's financial guardianship.
"This is not a story about a kid who found a loophole. It's a story about an industry that built the loophole, marketed it to children and collected fees on every transaction," said Frederick Schenk, managing partner of The Schenk Law Firm. "We intend to hold every link in that chain accountable."
According to recent data from Common Sense Media, online gambling is posing serious consequences for rising numbers of young people. A recent national survey from the non-profit revealed 36% of boys age 11 to 17 in the U.S. have gambled in the past year.
The lawsuit seeks to hold the defendants accountable and to address what plaintiffs' counsel describe as systemic failures that allowed illegal gambling access and financial facilitation to reach a minor.
About The Schenk Law Firm
Headquartered in San Diego, The Schenk Law Firm is a full-service practice comprised of top trial and business attorneys with many decades of experience in complex litigation, corporate strategy and government service – delivering sophisticated legal counsel backed by proven leadership and results. For more information, visit www.schenklawfirm.com.
Media Contact
Sydnie Moore, The Schenk Law Firm, 1 619-823-8448, [email protected], https://schenklawfirm.com/
SOURCE The Schenk Law Firm
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