Coinbase is facing a $1 billion lawsuit from BiT Global Digital Limited over its decision to delist Wrapped Bitcoin (wBTC).
The Hong Kong-based exchange claims that Coinbase’s move was a deliberate attempt to monopolize the market and promote its own rival product, cbBTC.
Filed on December 13 in the Northern District of California, the lawsuit accuses Coinbase of anti-competitive practices under the Sherman Act.
Coinbase’s Delisting of wBTC Damaged Consumer Confidence
BiT Global alleges that Coinbase’s delisting of wBTC caused significant financial losses and damaged consumer confidence in the token.
The complaint further accuses Coinbase of making false statements suggesting that wBTC failed to meet its listing standards.
The delisting was announced on November 19, with Coinbase citing unspecified failures of wBTC to meet its token listing standards.
BiT Global’s legal team, led by law firm Kneupper & Covey, argues that Coinbase’s reasoning was misleading.
“We believe this decision sets a terrible precedent for everyone in the cryptocurrency space,” said attorney Kevin Kneupper.
“If an exchange of Coinbase’s size can delist a cryptocurrency just as it plans to launch its own competing product, who’s safe? And who’s next?”
BiT Global has been a joint custodian of wBTC’s Bitcoin reserves, alongside crypto firm BitGo, since August 2024.
The exchange claims that Coinbase’s delisting move came shortly after the launch of Coinbase’s own wrapped Bitcoin product, cbBTC.
BiT Global’s legal filing asserts that Coinbase’s actions were intended to diminish the competitiveness of wBTC and pave the way for cbBTC’s market dominance.
The lawsuit seeks more than $1 billion in damages and requests injunctive relief to prevent further harm.
Bit Global, the custodian recently added to WBTC through its partnership with Justin Sun, has sued Coinbase over its delisting
They say Coinbase unfairly delisted WBTC to push its own rival product, cbBTC pic.twitter.com/8cpojx5mFX— db (@tier10k) December 13, 2024
Coinbase’s earlier announcement about the delisting emphasized its commitment to high standards for token listings.
“We regularly monitor the assets on our exchange to ensure they meet our listing standards. Based on our most recent review, Coinbase will suspend trading for wBTC (wBTC) on Dec. 19, 2024, on or around 12 pm ET.”
Coinbase to Shift Toward More Revenue Streams Under Trump
Last month, Tom Duff Gordon, Coinbase’s Vice President of International Policy, said the exchange aims to shift toward more predictable revenue streams, such as stablecoin fees, staking rewards, and subscription services under Trump.
“We want to build an earnings profile that isn’t entirely dependent on market volatility,” he explained.
As Trump prepares to take office, the expectation of reduced regulatory friction offers hope for U.S.-based exchanges like Coinbase.
Gordon reiterated the company’s commitment to the American market, stating, “The U.S. will continue to be our most important market.
The cryptocurrency sector has become a significant player in political financing during the 2024 election cycle, with industry-funded PACs raising a total of $190 million.
The Winklevoss twins, Cameron and Tyler, stand out as the largest individual donors, having contributed a combined $10.1 million.
Other significant contributors from the cryptocurrency industry include Coinbase CEO Brian Armstrong, who has given over $1.3 million to both Republican and Democratic PACs.
As reported, Coinbase has also announced a $25 million donation to the super political action committee Fairshake, aiming to bolster support for pro-crypto candidates in the upcoming 2026 midterm elections.
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