BiT Global sued Coinbase for unfairly delisting wBTC to promote its own cbBTC. Cryptocurrency exchange Coinbase is accused of violating antitrust laws and making misleading statements regarding wBTC standards.
Cryptocurrency exchange sued
BiT Global has filed a lawsuit against Coinbase, alleging that Coinbase unfairly delisted wrapped Bitcoin (wBTC) to promote its own competing product, Coinbase Wrapped BTC (cbBTC). The company argues that Coinbase’s claim that it delisted wBTC due to “listing standards” is false, especially given that the exchange recently listed several meme coins, including PEPE, WIF and MOG.
In the lawsuit, filed on December 13, Coinbase alleges that it violated federal antitrust laws by attempting to monopolize the Bitcoin market and using its dominant position to harm competition. BiT Global alleges that Coinbase’s stated reason for delisting wBTC due to “listing standards” contradicts the exchange’s recent approval of several meme-based crypto assets. The complaint specifically cites Coinbase’s recent listing of PEPE, WIF and MOG. The lawsuit cites MOG’s own disclaimer, writing
Coinbase’s decision to list Mog just two weeks after delisting wBTC shows that the decision had nothing to do with standards and everything to do with unfairly and fraudulently pushing wBTC out of the market.
Misrepresentations for wBTC
BiT Global also alleges that Coinbase made false and misleading statements about wBTC’s compliance with listing standards through the delisting announcement. The lawsuit seeks more than $1 billion in damages and seeks injunctive relief to prevent additional damages. The lawsuit filing came before wBTC’s trading on Coinbase was suspended. The exchange first announced the delisting of the product on November 19. Coinbase said in late November that it would delist WBTC as of December 19, 2024, due to listing standards. The announcement came after Coinbase introduced the cbBTC token on Base and Ethereum on September 12, initially mocking the token following the ongoing WBTC controversy.
BiT Global’s lawyers, legal advisors Kneupper & Covey, claimed that Coinbase’s removal from the WBTC list violated anti-competition policies and federal rules. According to the lawsuit, Coinbase’s citation of listing standards was also an insufficient reason for the decision. Documents filed in the Northern District of California showed that Coinbase listed “fundamentally worthless” meme coins such as Pepe (PEPE). BiT Global is seeking injunctive relief against Coinbase, as well as damages in excess of $1 billion.
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