BiT Global Digital Sues Coinbase For Delisting wBTC Causing $1 Billion In Damages

Key Points:

• BiT Global Digital is suing Coinbase for $1 billion, alleging antitrust violations after the platform delisted wBTC.
• The lawsuit challenges Coinbase’s claim that wBTC failed listing standards, pointing to the exchange’s approval of meme-based tokens like PEPE and MOG.

Cryptocurrency exchange Coinbase has been taken to court by BiT Global Digital over claims the platform illegitimately delisted wrapped Bitcoin (wBTC) in a bid to market its own competing token, Coinbase Wrapped Bitcoin (cbBTC).

Read more: US Banks Crypto Warning Revealed Through Coinbase Letters

BiT Global Digital Files $1 Billion Lawsuit Against Coinbase

Filed on December 13 in the US District Court for the Northern District of California, the class action alleges that the actions by Coinbase have breached federal antitrust laws with an attempt to monopolize the wrapped Bitcoin market.

BiT Global Digital believes that Coinbase’s reason for the delisting—failure to meet “listing standards”—is unfounded. The lawsuit also points to the recent listing of meme-based tokens like PEPE, WIF, and MOG, which was approved by Coinbase, citing inconsistency in applying the listing criteria. Announced on November 19, wBTC is set to be delisted starting from December 19, 2024.

The legal dispute comes amid significant changes in the management of wBTC. BitGo, the token’s primary custodian since its launch in 2019, recently transferred custody responsibilities to a consortium involving BiT Global Digital and other entities. Under this arrangement, BitGo retains operational control, while BiT Global Trust now acts as the custodian of wBTC’s collateral.

Rising Competition Between wBTC and Coinbase’s cbBTC

BiT Global Digital further contends that Coinbase’s actions have weakened competition, especially because cbBTC, which was launched in September 2024, has surged in popularity. Having reached a market capitalization of $2 billion, cbBTC has emerged as the second-biggest wrapped Bitcoin product, second only to wBTC, which is still the market leader with a $13.8 billion market cap.

The lawsuit seeks over $1 billion in damages and injunctive relief to prevent further alleged antitrust violations. It also flags broader concerns about the stability of wBTC, which has come under scrutiny after BitGo changed its custody setup and Coinbase aggressively pushed into the wrapped Bitcoin market.