Coinbase Seeks to Dismiss BiT Global’s wBTC Lawsuit
Date: 2025-01-23 Author: Gabriel Deangelo Categories: BUSINESS
U.S. cryptocurrency exchange Coinbase has asked a federal judge to dismiss a lawsuit filed by BiT Global. In the lawsuit, the company accuses Coinbase of violating antitrust laws by delisting wrapped BTC (wBTC).
According to a Jan. 21 filing in the U.S. District Court for the Northern District of California, Coinbase is urging the court to dismiss BiT Global’s lawsuit, citing the company’s ties to Tron founder Justin Sun. Coinbase’s lawyers noted that the delisting of wBTC was due to “unacceptable risks associated with the potential to transfer control of the token to Mr. Sun.”
“The court should dismiss BiT’s complaint in its entirety,” Coinbase said. “And it should do so with prejudice because the fundamental flaws in the complaint, including Coinbase’s lack of market power, cannot be remedied. BiT has failed to demonstrate harm, falsity of its representations, or exceptional conduct on our part.”
Coinbase announced in November 2024 that it would cease trading wBTC, effective December 19. BiT Global filed suit on December 13, arguing that the decision had harmed the wBTC market. The judge denied BiT’s motion to injunctive relief.
BitGo, the custodian of wBTC, entered into an agreement with BiT Global and Justin Sun in August 2024 to jointly control the cryptocurrency. Coinbase has expressed concerns about the partnership, given Sun’s past indictments by the U.S. government.
The court will hear Coinbase's motion to dismiss the lawsuit at a hearing scheduled for April 3. BiT Global has not yet responded to a request for comment at the time of publication.
In addition, Coinbase continues to face other legal proceedings, including a lawsuit filed in 2023 by the U.S. Securities and Exchange Commission (SEC). That lawsuit is currently on hold pending appeal. The company is also actively pushing the SEC to establish clear regulatory rules for the cryptocurrency industry in the U.S.
