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BiT Global is suing Coinbase for $1 billion, claiming unfair practices after it delisted wBTC to promote its own competing product, cbBTC.
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Crypto exchange Coinbase is being sued for over $1 billion by BiT Global Digital Limited, accusing the company of harming the market for wrapped Bitcoin (wBTC) after a November decision to delist the token.
In a Dec. 13 complaint, BiT Global alleges that Coinbase’s decision to delist wBTC was aimed at promoting its own competing product, cbBTC—a move that resulted in massive financial losses and eroded consumer confidence in wBTC.
The lawsuit covers allegations of attempted monopolization of the wrapped Bitcoin market under the Sherman Act, claims of predatory practices to undermine wBTC’s market position and accusations of false statements implying wBTC failed to meet listing standards.
The exchange announced the token delisting on Nov. 19, citing undisclosed failures to meet its standards for listing tokens.
The lawsuit cites Coinbase’s memecoin listings while challenging wBTC compliance with standards. Source: Kneupper & Covey
Related: Stop panicking about Wrapped Bitcoin — There are other coins
BiT Global is a Hong Kong-based crypto exchange. Since August, it has been a joint custodian for wBTC’s Bitcoin reserves alongside crypto firm BitGo.
The suit was filed by law firm Kneupper & Covey in the Northern District of California. According to the BiT Global attorneys, Coinbase has been onboarding memecoins for trading on its platform while challenging wBTC compliance with listing standards shortly after releasing a similar product.
“We believe this decision sets a terrible precedent for everyone in the cryptocurrency space,” said attorney Kevin Kneupper. “If an exchange of Coinbase’s size can delist a cryptocurrency just as it plans to launch its own competing product, who’s safe? And who’s next?”
The lawsuit seeks damages exceeding $1 billion and includes demands for injunctive relief to prevent further harm.
In a previous interview with Cointelegraph, a spokesperson for BiT Global said Coinbase’s move aimed to gain an advantage over the token:
“It’s clear that Coinbase’s decision is an attempt to gain a competitive advantage, pushing forward their own wrapped Bitcoin product, cbBTC, and removing the largest and most influential competitor in WBTC,” said the spokesperson in an email to Cointelegraph on Nov. 20.
Cointelegraph reached out to Coinbase but did not receive an immediate response. In its previous statement, the exchange said the decision was based on its regular assessment of tokens standards:
“We regularly monitor the assets on our exchange to ensure they meet our listing standards. Based on our most recent review, Coinbase will suspend trading for wBTC (wBTC) on Dec. 19, 2024, on or around 12 pm ET.”
Related: DeFi protocol Threshold proposes Bitcoin wrapper merger to ‘save WBTC’
This article first appeared at Cointelegraph.com News
