Crypto Company Takes Legal Action Against Coinbase Over wBTC Delisting
BiT Global, a key player in the wrapped Bitcoin (wBTC) ecosystem and associated with Justin Sun, has filed a lawsuit against Coinbase over its decision to delist wBTC.
This move came after Coinbase announced it would remove the asset from its platform starting December 2024, citing routine listing reviews. The timing of this decision coincided with the involvement of BiT Global as a custodian for wBTC, following BitGo’s decision to share custody of the token with other entities, including BiT Global.
In response to Coinbase’s delisting, BiT Global’s legal team argues that the decision is anti-competitive and violates both state and federal regulations. The lawsuit claims that Coinbase is deliberately hindering competition by removing wBTC just as it launches its competing product, cbBTC.
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Launched in September 2024, cbBTC is a similar tokenized Bitcoin product, with a market capitalization of over $2 billion, far smaller than wBTC’s current $13.4 billion valuation. The legal filing contends that Coinbase’s actions, coming after the increasing success of wBTC, are aimed at reducing competition by limiting its trade availability while pushing its own product.
While Coinbase maintains that it upholds strict listing standards and evaluates assets based on these criteria, BiT Global’s legal team points out the inconsistency in Coinbase’s actions, noting the platform’s recent inclusion of various “memecoins” while simultaneously delisting wBTC. The controversy highlights the ongoing challenges within the crypto space as platforms expand their offerings, sometimes clashing with the interests of existing projects.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
