George Miller
Coinbase has successfully resolved its legal disagreement with BiT Global regarding the removal of wrapped Bitcoin (wBTC) from its trading platform. The case captured attention when BiT Global requested a temporary restraining order (TRO) to stop the delisting, which the court ultimately rejected.
Coinbase Triumphs in Legal Battle
Paul Grewal, the Chief Legal Officer at Coinbase, expressed his contentment with the ruling. He shared on X, “BiT Global lost. Today they asked the Court to order us to stop from delisting wBTC to protect our customers. Today the Court said no.” He also credited the legal team at Wilmer Hale, particularly Sonal Mehta, for their support.
The conflict started when the crypto exchange announced it would halt wBTC trading on November 19, 2024. This decision stemmed from compliance issues following BitGo’s partnership with BiT Global and Justin Sun. According to Coinbase, this collaboration prompted a review that concluded wBTC no longer met its standards, posing an “unacceptable risk to its customers and the integrity of its exchange.”
BiT Global lost. Today they asked the Court to order us to stop from delisting wBTC to protect our customers. Today the Court said no. We appreciate the Court’s consideration and the outstanding advocacy of Sonal Mehta and her team at @WilmerHale.
— paulgrewal.eth (@iampaulgrewal) December 18, 2024
The court documents highlighted Coinbase’s comprehensive asset evaluation process. The exchange argued that its hard-earned reputation would suffer if it had to support assets that pose risks.
A significant aspect of Coinbase’s defense was its disapproval of any ties to Justin Sun. The filing pointed out that Sun’s involvement in wBTC generated considerable concern within the crypto community, causing “panic” and “FUD” (fear, uncertainty, doubt).
Additional Points of Contention
The filing also challenged BiT Global’s assertions of damage, noting its minor role in the global wBTC trading volume. “BiT’s perceived losses are purely speculative. It failed to explain how delisting wBTC from one exchange…could cause irreparable damage,” the argument stated.
Coinbase emphasized that wBTC can still be traded on other platforms like Binance and Uniswap. Furthermore, users of Coinbase Wallet have the option to store and trade wBTC independently.
The exchange reaffirmed its stance, stating, “The claims regarding wBTC not meeting Coinbase’s listing criteria and the decision to suspend trading are accurate.” Ultimately, Coinbase argued that granting BiT’s request would create a harmful precedent, and noted that the lawsuit’s urgency was questionable as BiT delayed filing for several weeks.