BiT Global, the custodian of Wrapped Bitcoin (wBTC), is taking legal action against Coinbase, a major crypto exchange, for delisting wBTC in November. In the complaint, BiT Global accuses Coinbase of delisting wBTC as a “cash grab” and replacing it with its own version called cbBTC. The lawsuit alleges that Coinbase’s actions violated US commerce laws by attempting to monopolize the market and intentionally debase wBTC.
The complaint also compares Coinbase’s actions to those taken by tech giants like Microsoft, Google, and Facebook against competitors in the past. BiT Global claims that Coinbase engaged in predatory or anticompetitive behavior in an effort to monopolize the market for centralized cryptocurrency exchanges in the United States. This included spreading “FUD” (fear, uncertainty, and doubt) about wBTC to influence market sentiment.
On November 20th, Coinbase announced that it would suspend trading for wBTC on December 19th after conducting a review. Earlier this year, Coinbase had introduced its own wrapped version of Bitcoin called cbBTC. Despite the legal battle and controversy, the price of wBTC was trading at $101,122 at the time of writing, showing a 1.7% increase in the last 24 hours.
To stay updated on this developing story and other crypto news, readers are encouraged to subscribe for email alerts and follow the latest updates on X, Facebook, and Telegram. This lawsuit between BiT Global and Coinbase highlights the ongoing competition and disputes within the cryptocurrency industry, especially when it comes to asset custody and trading on major exchanges. The outcome of this legal battle could have significant implications for the future of wrapped Bitcoin and other tokenized assets in the market.
