Coinbase faces billion-dollar lawsuit over Wrapped Bitcoin delisting
Coinbase lawsuit from BiT Global Digital
Coinbase, one of the world’s largest cryptocurrency exchanges, is facing a $1 billion lawsuit from BiT Global Digital, which claims the company engaged in market manipulation by delisting Wrapped Bitcoin (WBTC) to promote its own competing product, Coinbase Wrapped Bitcoin (cbBTC).
The lawsuit, filed on December 13, accuses Coinbase of violating U.S. antitrust laws, specifically citing attempted monopolization of the Wrapped Bitcoin market under the Sherman Act, according to Cointegraph.
BiT Global alleges that Coinbase’s decision to remove WBTC was a calculated move to diminish its market position while boosting cbBTC’s prominence.
Allegations of Predatory Practices
According to the complaint, Coinbase’s actions were part of a broader strategy to undermine competitor assets in favor of its proprietary offerings. The lawsuit further alleges that Coinbase made false and misleading statements suggesting Wrapped Bitcoin no longer met the platform’s listing standards.
“Coinbase’s predatory conduct has caused significant harm to the market and misled investors,” the lawsuit claims, asserting that these actions are inconsistent with the platform’s publicly stated listing policies.
In response, Coinbase’s Chief Legal Officer, Paul Grewal, defended the company’s decision, stating that its listing and delisting standards are applied consistently. “When an asset no longer meets our listing standards, we will drop it. When another asset can meet or exceed market requirements without sacrificing those standards, we will list it,” Grewal wrote on social media platform X.
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This lawsuit marks a significant escalation in regulatory and legal scrutiny for Coinbase, which has already faced challenges from U.S. regulators in recent months. Industry analysts are watching closely, as the outcome could set a precedent for how exchanges manage asset listings and competition in the rapidly evolving cryptocurrency market.
According to a forecast by Bitwise, Coinbase’s stock is expected to surpass $700 per share by 2025, potentially making it the world’s most valuable brokerage, overtaking Charles Schwab. With shares currently trading above $302, the price would need to more than double to reach that target.
