Coinbase ends wBTC era following legal win over BiT Global
Coinbase has announced the suspension of trading for Wrapped Bitcoin
In a decisive move following a favorable court ruling, Coinbase Global Inc. has announced the suspension of trading for Wrapped Bitcoin (wBTC) on its platform.
Effective as of 12 p.m. ET, the trading halt affects Coinbase’s primary platform, including both its simple and advanced trading interfaces, as well as Coinbase Exchange and Coinbase Prime, according to CoinGape.
While trading support for wBTC has been fully disabled, Coinbase clarified that users will retain access to their tokens and can withdraw funds at any time. The company stated that the decision aligns with its routine review of listed assets to ensure compliance with its listing standards.
Legal Victory and Community Backlash
The move comes on the heels of a legal victory for Coinbase against BiT Global, a firm linked to crypto entrepreneur Justin Sun. BiT Global had alleged that Coinbase’s decision to delist wBTC was intended to promote its own competing token, cbBTC. However, the court ruled in Coinbase’s favor, affirming the platform’s right to delist the token.
Despite its legal triumph, Coinbase’s decision has sparked criticism from the broader crypto community. Some users have accused the exchange of prioritizing meme tokens over established projects with tangible utility. Critics have also questioned the transparency and consistency of Coinbase’s asset listing criteria.
Adding to the controversy, World Liberty Financial, a financial firm with backing from former President Donald Trump, announced it would drop support for cbBTC in favor of wBTC as a form of protest.
Coinbase has not directly responded to these criticisms. However, the exchange’s assurance of continuous fund access for wBTC holders appears aimed at mitigating user concerns. The move reflects the growing scrutiny on centralized exchanges as users demand greater transparency and fairness in asset listings.
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.
