Coinbase Faces $1 Billion Lawsuit from BiT Global Over Delisting Wrapped Bitcoin (WBTC)
Date: 2024-12-16 Author: Oliver Abernathy Categories: BUSINESS
Hong Kong-based exchange BiT Global Digital Limited has filed a $1 billion lawsuit against Coinbase, accusing the US platform of illegally delisting the Wrapped Bitcoin (WBTC) token. BiT Global claims that the move was aimed at promoting Coinbase’s own product, cbBTC.
The lawsuit was filed on December 13 in the Northern District of California, and the allegations are based on violations of the Sherman Antitrust Act. BiT Global claims that Coinbase’s actions have caused substantial harm to both the financial interests and consumer confidence in the WBTC token.
According to BiT Global, Coinbase made misleading statements about WBTC not meeting listing standards. The delisting itself was announced on November 19, and the reason was allegedly unspecified non-compliance of the token with the platform’s internal standards. However, the law firm Kneupper & Covey, which represents BiT Global, believes this statement is false.
“If a major exchange like Coinbase can delist a cryptocurrency to promote its own product, then what happens next? Who will be the next target?” commented attorney Kevin Neupper.
BiT Global, which is one of the custodians of the WBTC reserves along with BitGo, claims that the delisting of WBTC occurred shortly after Coinbase launched its cbBTC product. The company claims that this was a planned attempt to weaken the competitiveness of WBTC and ensure cbBTC’s dominance in the market. In the lawsuit, BiT Global is seeking more than $1 billion in damages, as well as an injunction to prevent further damage.
Coinbase has previously stated that its actions are based on high standards of token verification. “We regularly review the list of assets on the platform to ensure they meet our standards. WBTC will be delisted on December 19, 2024 at 12:00 PM ET,” the exchange said in a statement.
At the same time, Coinbase is looking to diversify its revenue sources. According to Tom Duff Gordon, the company’s vice president of international policy, the platform will develop stable sources of income, such as stablecoin fees, staking rewards, and subscription services.
Gordon emphasized the importance of the US market for Coinbase, noting that the company hopes for less regulatory pressure with the new government.
The cryptocurrency industry is playing an increasingly important role in US politics, raising significant funds to finance election campaigns. In the 2024 election cycle, political committees associated with the industry have raised $190 million. Major donors included the Winklevoss twins, who gave more than $10 million, and Coinbase CEO Brian Armstrong, who gave $1.3 million to both parties.
Coinbase also contributed $25 million to the Fairshake Committee, which supports pro-crypto candidates ahead of the 2026 elections.
