Coinbase Faces $1 Billion Lawsuit from Bit Global Over Wrapped Bitcoin Delisting

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  • Bit Global sues Coinbase for $1B as it claims WBTC was delisted to favor Coinbase’s rival token, cbBTC.
  • Coinbase faces antitrust accusations for allegedly boosting cbBTC to monopolize the wrapped Bitcoin market.
  • Legal battle heats up as Bit Global demands WBTC delisting reversal and jury trial against Coinbase practices.

American crypto exchange Coinbase is under legal scrutiny after Bit Global filed a lawsuit against it on December 13. The Hong Kong-based crypto custodian alleges Coinbase unfairly delisted Wrapped Bitcoin (WBTC) to promote its rival product, Coinbase Wrapped Bitcoin (cbBTC).  

https://twitter.com/lwsresearch/status/1867669466492154165

Allegations of Market Manipulation

In a 36-page complaint, Bit Global accused Coinbase of monopolization, trade libel, and violating antitrust laws. The firm claimed Coinbase’s decision to delist WBTC was not based on listing standards but rather aimed at eliminating competition.  

According to Bit Global, Coinbase’s actions were intended to increase transaction revenues, as cbBTC’s adoption would generate higher fees. The custodian further argued that Coinbase’s inclusion of memecoins, such as PEPE, contradicts its claim of adhering to strict listing criteria.  

Bit Global seeks $1 billion in damages, citing harm to the WBTC market. The firm also demands the court declare Coinbase’s delisting of WBTC illegal and prohibit the exchange from promoting cbBTC. Additionally, Bit Global has requested a jury trial if deemed necessary.  

The lawsuit emphasized Coinbase’s alleged centralization of power, claiming the delisting of WBTC was strategically planned. “Coinbase coveted WBC’s market share and wanted it for itself,” Bit Global stated in its filing.  

cbBTC Gains Momentum 

Coinbase launched cbBTC on Ethereum and its Base network in September, marking its expansion in the wrapped Bitcoin market. The exchange also introduced cbBTC trading on Solana, showcasing its growing influence. With a market cap of $2 billion, cbBTC now ranks as the second-largest wrapped Bitcoin product after WBTC.  

The lawsuit raises questions about market practices and their impact on decentralized innovation. Bit Global’s lawsuit raises concerns over competition and fairness.

The post Coinbase Faces $1 Billion Lawsuit from Bit Global Over Wrapped Bitcoin Delisting appeared first on Crypto News Land.

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