Coinbase has recently found itself embroiled in a lawsuit filed by BiT Global, which is connected to Justin Sun, over the delisting of wrapped Bitcoin (wBTC) from its platform. The conflict erupted after Coinbase announced its decision to remove wBTC on December 19, citing concerns over increased protocol risks due to Sun’s involvement. BiT Global alleges that the delisting is defamatory and accuses Coinbase of attempting to monopolize the tokenized Bitcoin market.
In response to the lawsuit, Coinbase’s Chief Legal Officer, Paul Grewal, has addressed the allegations, stating that the company’s decision to delist wBTC was based on internal reviews and concerns about past financial misconduct involving Sun. Grewal highlighted that Coinbase’s response challenges the merits of BiT Global’s request for a temporary restraining order. The lawsuit from BiT Global raises concerns about anti-competitive behavior on the part of Coinbase, accusing the exchange of promoting its own rival product, cbBTC, over wBTC.
The lawsuit also argues that the delisting of wBTC violates federal laws intended to prevent monopolistic practices. Despite these allegations, Coinbase has defended its actions, stating that its platform only accounts for less than 1% of wBTC transactions, thereby minimizing any potential impact on BiT Global. The case underscores ongoing tensions in the crypto industry surrounding custodianship, competition, and regulatory oversight, particularly in relation to individuals with regulatory histories under scrutiny such as Sun.
While Coinbase faces legal challenges over the delisting of wBTC, it has announced an expansion of its offerings by integrating Apple Pay for fiat-to-crypto conversions. This move aims to enhance accessibility to digital assets and aligns with Apple’s growing interest in the crypto market. Historically cautious about embracing digital assets, Apple has started to show a more open stance by collaborating with platforms like Coinbase, indicating a shift towards actively exploring the crypto space in line with changing political and regulatory trends in the US.
The integration of Apple Pay by Coinbase reflects broader trends in the US towards the adoption and regulation of digital assets. This includes potential changes at regulatory agencies like the SEC, with reports suggesting the arrival of Paul Atkins could impact the crypto industry. As Apple and other major tech companies increasingly engage with the crypto market, there is a growing recognition of the importance and potential of digital assets, leading to more widespread acceptance and adoption within the mainstream financial ecosystem.
