Originally published on: December 14, 2024
Coinbase, one of the leading cryptocurrency exchanges, is under fire as BiT Global Digital files a lawsuit seeking over $1 billion in damages. The lawsuit accuses Coinbase of engaging in anticompetitive behavior by delisting Wrapped Bitcoin (wBTC) in November.
In response to the criticism, Coinbase’s chief legal officer, Paul Grewal, defended the exchange’s decision-making process. He reiterated Coinbase’s commitment to maintaining high listing standards and stated that when an asset no longer meets those standards, it will be delisted.
The lawsuit alleges that Coinbase delisted wBTC to promote its own Bitcoin-based token, Coinbase BTC (cbBTC). This move by Coinbase has sparked controversy within the crypto community, with industry insiders, including Tron founder Justin Sun, questioning the company’s transparency and motives.
The lawsuit claims that Coinbase’s actions violate the Sherman Act by monopolizing the wrapped Bitcoin market and engaging in predatory practices. BiT Global accuses Coinbase of issuing false statements about wBTC’s compliance to undermine its position in the market and promote cbBTC.
In response to the lawsuit, a Coinbase spokesperson reiterated the company’s commitment to maintaining integrity in its listing standards. The exchange announced the delisting of wBTC on Nov. 19, citing undisclosed failures to meet its standards.
The lawsuit, filed by law firm Kneupper & Covey, is currently being heard in the United States District Court for the Northern District of California. As the legal battle unfolds, the crypto community eagerly awaits the resolution of this contentious issue.
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