Coinbase is being sued by BiT Global Digital Limited for over $1 billion in damages related to the exchange’s decision to delist Wrapped Bitcoin (wBTC). The Hong Kong-based exchange accuses Coinbase of anti-competitive behavior and monopolistic practices.
Allegations of Anti-Competitive Practices
BiT Global filed the lawsuit on December 13, 2024, in the Northern District of California. The exchange claims that Coinbase’s delisting of wBTC was an attempt to push its own rival product, cbBTC, to the forefront. The lawsuit accuses Coinbase of violating the Sherman Act by engaging in anti-competitive actions.
Consumer Impact and Financial Losses
According to BiT Global, the removal of wBTC from Coinbase caused financial losses and harmed consumer confidence in the token. The lawsuit also claims that Coinbase made misleading statements, suggesting that wBTC did not meet the required standards for listing on the platform.
Delisting Announcement and Misleading Statements
Coinbase’s decision to delist wBTC was announced on November 19, with the company citing unspecified issues with the token’s compliance. BiT Global’s legal team, led by the law firm Kneupper & Covey, argues that Coinbase’s justification for the move was deceptive. Attorney Kevin Kneupper criticized the delisting, calling it a harmful precedent for the cryptocurrency industry.
The Role of BiT Global and BitGo
BiT Global, in partnership with BitGo, has served as a joint custodian of wBTC’s Bitcoin reserves since August 2024. The exchange alleges that the delisting occurred shortly after Coinbase launched its own wrapped Bitcoin product, cbBTC, and that this move was designed to undermine wBTC’s competitiveness.
Lawsuit Seeks Over $1 Billion in Damages
BiT Global’s legal filing seeks more than $1 billion in damages and calls for injunctive relief to prevent further damage to the market. The exchange contends that Coinbase’s actions were meant to eliminate competition and dominate the wrapped Bitcoin market with cbBTC.
Coinbase’s Response to Delisting
Coinbase has defended its decision, emphasizing its commitment to maintaining high standards for token listings. The company announced that trading for wBTC would be suspended on December 19, 2024, following a routine review of assets on the platform. Coinbase assured users that the delisting was based on the most recent review of the token’s compliance with their standards.
Coinbase Shifts Focus Toward Predictable Revenue Streams
In addition to the lawsuit, Coinbase is adjusting its business strategy. Last month, Vice President of International Policy, Tom Duff Gordon, revealed that the company is focusing on more stable revenue sources such as stablecoin fees, staking rewards, and subscription services. This shift aims to reduce Coinbase’s dependence on market volatility.
Political Influence and Contributions
Coinbase is also making moves in the political landscape. The cryptocurrency industry has played a significant role in political funding during the 2024 election cycle. Industry-backed PACs have raised $190 million, with major contributors like the Winklevoss twins and Coinbase CEO Brian Armstrong. Coinbase has also announced a $25 million donation to the pro-crypto PAC Fairshake, aimed at supporting candidates in the 2026 midterm elections.
This evolving situation highlights the ongoing regulatory and competitive challenges facing major cryptocurrency exchanges like Coinbase
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