BiT Global, a custodian of Wrapped Bitcoin (wBTC), has taken legal action against Coinbase after the US-based crypto exchange delisted wBTC in November. According to new court documents, BiT Global accuses Coinbase of delisting wBTC in order to replace it with its own version of the asset, cbBTC, in what they describe as a “cash grab.”
The complaint filed by BiT Global alleges that Coinbase saw wBTC as a competitor with an innovative product that allowed users to utilize the value inherent in Bitcoin in new ways. The lawsuit claims that Coinbase decided to delist wBTC once its value had been demonstrated, in order to promote its own version of the asset and monopolize the market.
BiT Global compares Coinbase’s actions to past actions taken by tech giants like Microsoft, Google, and Facebook against their competitors. They argue that Coinbase’s delisting of wBTC was in violation of US commerce laws, as it was an attempt to exclude wBTC from the market and intentionally debase it.
The complaint further alleges that Coinbase engaged in predatory and anticompetitive conduct to monopolize the market for centralized cryptocurrency exchanges in the US. Coinbase is accused of spreading false information about wBTC to create fear, uncertainty, and doubt (FUD) surrounding the asset and drive users towards its own cbBTC.
On November 20th, Coinbase announced the suspension of trading for wBTC on December 19th, citing a recent review. Earlier this year, Coinbase introduced cbBTC as its own wrapped version of Bitcoin. At the time of writing, wBTC is trading at $101,122, with a 1.7% increase in the last 24 hours.
In conclusion, the legal battle between BiT Global and Coinbase highlights the competitive nature of the cryptocurrency market and the challenges faced by custodians and exchanges. The outcome of this lawsuit could have far-reaching implications for the industry. Stay tuned for updates on this developing story.