Coinbase Responds to BiT Global’s Lawsuit Over wBTC Delisting
This is a segment from the Empire newsletter.
BiT Global vs. Coinbase: wBTC Delisting Controversy
Crypto custodian BiT Global has taken legal action against Coinbase for delisting wBTC. Coinbase announced its decision to delist wBTC in late November, shortly after launching cbBTC, its own wrapped bitcoin.
Coinbase responded to BiT Global’s lawsuit, presenting arguments regarding the motives behind the delisting. Coinbase claims that wBTC failed to meet its listing standards due to risks associated with Justin Sun's involvement.
According to Coinbase, its diligence revealed that BiT Global did not disclose Sun's role, which posed an unacceptable risk to customers and the integrity of the exchange.
In contrast, BiT Global accused Coinbase of having ulterior motives, arguing that the delisting was a strategy to promote cbBTC over competing products. BiT stated that Coinbase's actions mirror tactics used by major tech firms to eliminate competition.
Coinbase claimed that it only handled a minimal volume of wBTC trades and argued that there was insufficient evidence to warrant a temporary restraining order to maintain wBTC on its platform.
A hearing is scheduled in California to further address the arguments presented by both parties.