Coinbase has issued a formal response to a lawsuit filed by
BiT Global, a company tied to Justin Sun. The dispute arose after Coinbase
announced it would delist wrapped Bitcoin (wBTC) from its platform on December
19.
BiT Global alleges that the delisting is defamatory and aims
to monopolize the tokenized Bitcoin market. The lawsuit highlights concerns
over Coinbase’s decision, accusing the exchange of anti-competitive behaviour.
Meanwhile, Coinbase introduced Apple Pay support for
fiat-to-crypto conversions, reflecting US regulatory trends and Apple’s growing
interest in digital assets.
Coinbase Responds to wBTC Lawsuit
The conflict stems from changes in the custodianship of
wBTC. In August, BitGo announced it would share two of the three operational
keys for wBTC with BiT Global and its Singapore-based subsidiary. Coinbase raised
concerns about these changes, citing increased protocol risk due to Sun’s
involvement.
Bit Global, the custodian recently added to WBTC through its partnership with Justin Sun, has sued Coinbase over its delistingThey say Coinbase unfairly delisted WBTC to push its own rival product, cbBTC pic.twitter.com/8cpojx5mFX
— db (@tier10k) December 13, 2024
Paul Grewal, Coinbase’s Chief Legal Officer, addressed the
lawsuit. He stated that the company’s response to BiT Global’s request for a
temporary restraining order challenges the merits of the case. Grewal explained
that the decision to delist wBTC followed internal reviews and was influenced
by allegations of past financial misconduct involving Sun.
BiT Global Accuses Coinbase of Monopoly
BiT Global claims Coinbase’s actions promote its own
product, cbBTC, over wBTC. It accuses Coinbase of “predatory
practices,” noting that cbBTC’s market capitalization is $2 billion,
significantly smaller than wBTC’s $13.4 billion.
The lawsuit also argues that delisting wBTC violates federal
laws intended to prevent monopolistic practices. Coinbase, in its defense,
stated that its platform accounts for less than 1% of wBTC transactions,
minimizing any potential impact on BiT Global.
🚨BREAKING: #Coinbase responds to Justin Sun-connected BiT Global’s lawsuit over delisting wBTC. pic.twitter.com/RZmhWiE5Cv
— SmartViewAI.Com (@smartviewai) December 18, 2024
Coinbase’s concerns are linked to Sun’s regulatory history,
which includes investigations by the SEC and FBI. The case highlights ongoing
tensions in the crypto industry regarding custodianship, competition, and
regulatory…
