George Miller
Coinbase, a well-known cryptocurrency exchange, is being sued by BiT Global Digital Limited from Hong Kong, claiming over $1 billion in damages. The lawsuit, lodged on December 13 in California, accuses Coinbase of engaging in unfair market practices after deciding to remove Wrapped Bitcoin (wBTC) from its platform.
Details of the Lawsuit Against Coinbase
The core of the complaint revolves around Coinbase’s choice to delist wBTC, which BiT Global argues led to major financial setbacks and diminished trust in the token. The lawsuit claims that this action was aimed at boosting Coinbase’s own wrapped Bitcoin offering, cbBTC.
The legal documents reference the Sherman Act, alleging that Coinbase is trying to monopolize the wrapped Bitcoin sector. BiT Global further accuses Coinbase of employing harmful strategies to weaken wBTC’s market position and making misleading statements regarding the token’s eligibility for listing.
A Coinbase representative previously commented on the delisting decision, stating, “Coinbase is dedicated to upholding our rigorous listing standards, and we consistently review the assets on our platform. If an asset does not meet these standards, it will be removed.”
Reactions to the Lawsuit
The lawsuit is being pursued by the law firm Kneupper & Covey, representing BiT Global. Attorney Kevin Kneupper raised alarms about the far-reaching consequences of Coinbase’s actions. “This decision could set a bad example for the entire cryptocurrency industry,” he remarked. “If a major exchange like Coinbase can discard a cryptocurrency just as it is about to introduce its own rival product, who can feel secure? Who might be next?”
BiT Global, which collaborates with BitGo to manage the Bitcoin reserves of wBTC, perceives Coinbase’s actions as an effort to weaken wBTC in favor of cbBTC. A spokesperson for BiT Global previously stated, “It’s evident that Coinbase’s choice is aimed at gaining a competitive edge by sidelining their biggest competitor, wBTC,” as reported by CoinTelegraph.
Coinbase had announced earlier that trading for wBTC would halt on December 19, following a review of its listing criteria.