BiT Global Digital Limited Files $1 Billion Lawsuit Against Coinbase, Accusing the Exchange of Unfairly Delisting Wrapped Bitcoin (wBTC) to Promote Its Competing Token, cbBTC

The complaint filed on Dec.13 accused Coinbase of having violated anti-trust laws by attempting to monopolize the wrapped Bitcoin market.

BiT Global Digital Limited has filed a $1 billion lawsuit against Coinbase, accusing the exchange of having violated anti-trust laws by attempting to monopolize the wrapped Bitcoin market.

According to the complaint filed on Dec.13, Coinbase’s move to delist Wrapped Bitcoin (wBTC) was an effort to promote its own token, cbBTC, at the expense of a leading competitor in the market.

The exchange’s decision to remove wBTC from its platform, without providing specific reasons for the move, comes after an announcement on Nov. 19, stating that the token had failed to meet listing standards. However, BiT Global alleges that this claim is merely a pretense to further Coinbase’s own interests.

BiT Global claims that Coinbase’s decision to delist wBTC was a “predatory attempt” to force through cbBTC while removing a significant competitor from the market. A spokesperson for BiT Global described the exchange’s actions as an effort to “crush the competition and create a monopoly.”

The exchange’s decision to delist wBTC has sparked controversy within the crypto community, with some traders expressing concerns over the lack of transparency and clear standards for such actions.

Following the exchange’s announcement, Justin Sun, a known figure in the crypto industry and reportedly connected to BiT Global, took to Twitter to challenge Coinbase CEO Brian Armstrong’s stance on the issue.

Sun’s tweet included a screenshot of Armstrong’s previous statement, where he had emphasized the importance of competition and choice in the crypto market, including the presence of competitors to cbBTC.

In response to Sun’s tweet, Coinbase Chief Legal Officer Paul Grewal defended the exchange’s decision to delist by noting that assets not meeting set standards get removed just as competitive options meeting the demands of the market also get introduced.

It seems that Coinbase’s CEO doesn’t agree with your perspective. Who has the final say at Coinbase? pic.twitter.com/sia4TW5SQe

Sun’s move to highlight Armstrong’s previous statement has drawn both praise and criticism from the crypto community.

Some have accused Sun of attempting to use Armstrong’s words against him to further his own agenda, while others have expressed belief that the exchange’s actions do reflect inconsistent listing policies.

One community member remains skeptical of Coinbase’s statements regarding its high standards for listing, referring to certain tokens not having been listed, such as eCash (XEC), as an indication of inconsistency.

Community members expressed varying opinions on the legal fight between BiT Global and Coinbase over the exchange’s decision to delist Wrapped Bitcoin (wBTC).

Some praised Coinbase’s commitment to maintaining high listing standards, emphasizing the importance of such measures for the trust in and growth of the crypto industry as a whole.

Others, however, placed blame on both parties involved. One user pointed to Sun’s previous, undelivered promises, such as the pledge to provide liquidity to FTX claimants, rendering his commitments questionable.

A ruling on the case could set a strong precedent for exchange practices regarding token delistings and competitive conduct.

Meanwhile, top cryptocurrencies like Bitcoin, Ethereum, Dogecoin, and Solana continue to show resilience amid ongoing volatility in the sector.