Bit Global Sues Coinbase for Delisting WBTC Token

In a latest development, Bit Global has filed a lawsuit against crypto trading platform Coinbase Global Inc claiming that Coinbase has unlawfully delisted its WBTC token

Bit Global, a cryptocurrency exchange, has filed a lawsuit against Coinbase Global Inc (NASDAQ:COIN) alleging that the crypto trading platform unlawfully delisted its WBTC token so it could promote its own rival cbBTC.

According to a Dec. 13 complaint, BiT Global alleges that Coinbase's decision to delist wBTC was to massively financially benefit from its own product and that it has caused huge financial losses to the plaintiff and other wBTC investors. The lawsuit also claims that delisting wBTC will ultimately deteriorate consumer confidence in wBTC.

The lawsuit covers allegations of attempted monopolization of the wrapped Bitcoin market in violation of the Sherman Act, claims of predatory practices to undermine wBTC's market position and accusations of false statements implying wBTC failed to meet listing standards. It was filed by law firm Kneupper & Covey in the Northern District of California.

Lawsuit: Coinbase's Latest List Countless Meme Coins

The lawsuit pointed out that in recent months, Coinbase has been rapidly expanding its offerings with the listings of meme coins and tokens like Dogwifhat (WIF), Pepe (PEPE) and Mog Coin (MOG), all of which have "no inherent value."

It further stated that these actions suggest Coinbase is engaging in a broader strategy to monopolize the cryptocurrency market.

The suit adds that Coinbase's decision to list these memecoins while abruptly pulling out wBTC from the listing demonstrates a complete disregard for any defined listing standards.

"Like all the centralized tech giants before it, Coinbase gives lip service to the innovation of a decentralized world. But in the case of wrapped Bitcoin, Coinbase viewed it as just another cash grab," the firm's lawsuit noted.

Coinbase launched its own wrapped Bitcoin token in September, called Coinbase Wrapped BTC, or cbBTC. Last month, it delisted wBTC, explaining that it did not meet the exchange's listing standards. However, BiT Global alleged Friday that this was an unfair business practice.

"Having decided to copycat WBTC with its own product, Coinbase resorted to unfair and deceptive tactics that long been used by tech giants to crush their competition. But in this case, they were employed by one of the largest financial institutions in the world to eliminate an industry competitor."

The BitGlobal complaint noted that Coinbase's decision to list Mog just two weeks after delisting wBTC shows that the decision had "nothing to do with standards and everything to do with unfairly and fraudulently pushing wBTC out of the market.”

What Now?

The suit, which was filed by law firm Kneupper & Covey in the Northern District of California, seeks damages in an amount to be proven at trial, which could exceed $1 billion. It also includes demands for injunctive relief to prevent further harm to BiT Global and other wBTC investors from Coinbase's alleged unlawful conduct.

"We believe this decision sets a terrible precedent for everyone in the cryptocurrency space," stated 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?"