Coinbase Faces $1 Billion Lawsuit Over wBTC Delisting
Coinbase is embroiled in a $1 billion lawsuit filed by BiT Global Digital Limited, a Hong Kong-based exchange, following its decision to delist Wrapped Bitcoin (wBTC). BiT Global alleges that the move was a calculated attempt by Coinbase to dominate the market and promote its competing product, cbBTC.
The lawsuit, submitted on December 13 in the Northern District of California, accuses Coinbase of anti-competitive behavior under the Sherman Act.
Consumer Trust Damaged by wBTC Delisting
According to BiT Global, Coinbase’s November 19 announcement to delist wBTC significantly undermined consumer trust and triggered substantial financial losses. The exchange claims Coinbase further fueled uncertainty by suggesting wBTC had failed to meet token listing standards.
BiT Global’s legal team, represented by Kneupper & Covey, refuted these claims, calling Coinbase’s reasoning “misleading.” Attorney Kevin Kneupper warned of the broader implications:
“If an exchange the size of Coinbase can delist a cryptocurrency while launching its own rival product, it sets a dangerous precedent. Who’s safe? And who’s next?”
Allegations of Market Manipulation
The lawsuit highlights that BiT Global, alongside BitGo, has served as a joint custodian of wBTC reserves since August 2024. BiT Global argues that Coinbase’s move to delist wBTC coincided suspiciously with the launch of cbBTC, its proprietary wrapped Bitcoin product.
The legal filing asserts that Coinbase’s actions were a deliberate effort to cripple wBTC’s competitiveness while securing market dominance for cbBTC.
BiT Global is seeking over $1 billion in damages and an injunction to prevent Coinbase from taking further actions that harm wBTC or similar tokens.
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