Coinbase, a crypto exchange, faces a lawsuit for over $1 billion by BiT Global Digital Limited, which accuses the exchange of damaging the wrapped bitcoin (wBTC) market by delisting the token on November 19.
In a lawsuit, BiT Global says that Coinbase took this action to delist wBTC because the company wanted to boost its own competing token, cbBTC. The law firm Kneupper & Covey in the Northern District of California filed a lawsuit on December 13.
The lawsuit accuses Coinbase of trying to take control of the wrapped Bitcoin market, using unfair business practices to weaken wBTC, and making false claims that wBTC didn’t meet its listing standards.
Coinbase announced the delisting of wBTC on November 19, citing undisclosed problems with the token. The move has resulted in a significant financial loss and damaged trust in wBTC.
BiT Global, a crypto exchange based in Hong Kong, has been working with Bitgo since August to manage the bitcoin reserves for wrapped bitcoin (wBTC).
Coinbase has long planned to launch cbBTC as a competitor to wBTC, especially amid growing concerns over Justin Sun’s involvement with wBTC.
BiT Global’s lawyers argue that Coinbase started allowing meme coins on its platform while challenging wBTC’s compliance with its listing standards, just after launching its own competing product, cbBTC.
Attorney Kevin Kneupper expressed concern over the precedent set by Coinbase’s actions, saying, “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?”
The lawsuit is seeking over $1 billion in damages and also requests an injunction to prevent further harm to wBTC.
Also Read: Coinbase to Delist Tether (USDT) in Europe
