Popular cryptocurrency exchange Coinbase is facing a lawsuit from Hong Kong-based BiT Global Digital Limited seeking more than $1 billion in damages. The complaint, filed in the Northern District of California on December 13, accuses an exchange of anti-competitive practices following the decision to delist Wrapped Bitcoin (wBTC).
Inside the Latest Lawsuit Against Coinbase
The allegations focus on the cryptocurrency exchange’s announcement that it would remove wBTC from its platform, a decision BiT Global claims has caused significant financial losses and undermined market confidence in the token. The lawsuit alleges that the delisting was an effort by Coinbase to promote its own wrapped Bitcoin product, cbBTC.
The legal filing cites the Sherman Act and accuses exchanges of trying to monopolize the market for wrapped bitcoin. BiT Global also accuses the exchange of using predatory tactics to damage wBTC’s standing and making false claims about the token’s compliance with listing standards.
A Coinbase spokesperson explained the reason for the delisting in a previous statement, saying, “Coinbase is committed to maintaining the high integrity of our listing standards and regularly evaluates the assets listed on our platform.” If an asset does not meet these criteria, it will be delisted.”
official comment
The lawsuit was filed by Kneupper & Covey, the law firm representing BiT Global. Kevin Kneupper, an attorney for the company, expressed concern about the broader implications of the exchange’s actions. “We believe this decision sets a terrible precedent for everyone in the cryptocurrency industry,” he said. “If an exchange the size of Coinbase could delist a cryptocurrency just as it plans to launch its own competing product, who would be safe? And who’s next?”
BiT Global, which jointly manages wBTC’s Bitcoin holdings with BitGo, sees this move as an attempt to undercut wBTC in favor of cbBTC. “It is clear that Coinbase’s decision is an attempt to gain a competitive advantage and push its own packaged Bitcoin product, cbBTC, and eliminate wBTC’s largest and most influential competitor,” a BiT Global spokesperson previously said in a CoinTelegraph report. .
Coinbase previously announced that wBTC trading would cease on December 19 due to a review of its listing standards.
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