Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
BiT Global Initiates $1 Billion Lawsuit Against Coinbase Regarding Wrapped Bitcoin (WBTC) Removal
Coinbase is currently confronted with a $1 billion lawsuit from BiT Global Digital Limited regarding its choice to delist Wrapped Bitcoin (wBTC).
The exchange based in Hong Kong asserts that Coinbase’s action was a calculated effort to dominate the market and promote its competing product, cbBTC.
Filed on December 13 in the Northern District of California, the lawsuit charges Coinbase with engaging in anti-competitive behavior under the Sherman Act.
Coinbase’s Removal of wBTC Undermined Consumer Trust
BiT Global contends that Coinbase’s removal of wBTC resulted in considerable financial setbacks and eroded consumer trust in the token.
The complaint additionally claims that Coinbase made misleading statements indicating that wBTC did not satisfy its listing criteria.
The announcement of the delisting occurred on November 19, with Coinbase citing unspecified shortcomings of wBTC in meeting its token listing requirements.
BiT Global’s legal representatives, led by the law firm Kneupper & Covey, argue that Coinbase’s justification was deceptive.
“We believe this decision establishes a troubling precedent for everyone in the cryptocurrency sector,” stated attorney Kevin Kneupper.
“If an exchange of Coinbase’s magnitude can remove a cryptocurrency just as it intends to introduce its own competing product, who is secure? And who is next?”
Since August 2024, BiT Global has served as a joint custodian of wBTC’s Bitcoin reserves, in partnership with the crypto firm BitGo.
The exchange asserts that Coinbase’s delisting action occurred shortly after the introduction of Coinbase’s own wrapped Bitcoin product, cbBTC.
BiT Global’s legal submission claims that Coinbase’s actions were designed to reduce the competitiveness of wBTC and facilitate cbBTC’s market supremacy.
Related Posts
The lawsuit demands over $1 billion in damages and seeks injunctive relief to avert further harm.
Bit Global, the custodian recently added to WBTC through its collaboration with Justin Sun, has initiated legal action against Coinbase regarding its delisting.
They allege that Coinbase unjustly delisted WBTC to promote its own rival product, cbBTC pic.twitter.com/8cpojx5mFX— db (@tier10k) December 13, 2024
Coinbase’s prior announcement concerning the delisting highlighted its dedication to maintaining high standards for token listings.
“We consistently monitor the assets on our exchange to ensure they comply with our listing standards. Following our latest review, Coinbase will halt trading for wBTC (wBTC) on Dec. 19, 2024, around 12 pm ET.”
Coinbase to Transition Towards Additional Revenue Sources Under Trump
Last month, Tom Duff Gordon, Coinbase’s Vice President of International Policy, mentioned that the exchange intends to pivot towards more stable revenue sources, such as stablecoin fees, staking rewards, and subscription services under Trump.
“We aim to create an earnings profile that is not solely reliant on market fluctuations,” he clarified.
As Trump prepares to assume office, the anticipation of diminished regulatory obstacles provides optimism for U.S.-based exchanges like Coinbase.
Gordon reaffirmed the company’s commitment to the American market, stating, “The U.S. will remain our most crucial market.”
The cryptocurrency industry has emerged as a notable participant in political financing during the 2024 election cycle, with industry-funded PACs raising a total of $190 million.
The Winklevoss twins, Cameron and Tyler, are recognized as the largest individual contributors, having donated a combined total of $10.1 million.
Other prominent contributors from the cryptocurrency sector include Coinbase CEO Brian Armstrong, who has contributed over $1.3 million to both Republican and Democratic PACs.
As reported, Coinbase has also declared a $25 million donation to the super political action committee Fairshake, aiming to enhance support for pro-crypto candidates in the forthcoming 2026 midterm elections.
The post Coinbase Faces $1B Lawsuit from BiT Global Over Wrapped Bitcoin (WBTC) Delisting appeared first on Cryptonews.
