The crypto exchange Coinbase is currently at the center of a major controversy. BiT Global Digital Limited, a Hong Kong-based company, has filed a lawsuit against Coinbase, claiming more than $1 billion in damages. This lawsuit follows Coinbase’s decision to delist Wrapped Bitcoin (wBTC) from its platforms, a decision which, according to BiT Global, aims to promote its own competing product, cbBTC.
Crypto exchange: Coinbase sued for sabotage
Coinbase announced the delisting of wBTC on November 19, 2024, citing unspecified failures to meet its crypto listing standards. However, BiT Global contests this justification, pointing out that Coinbase recently approved the listing of several memecoins, which calls into question the consistency of its listing criteria.
As a result, the complaint filed on December 13, 2024, accuses Coinbase of anti-competitive behavior and market sabotage. BiT Global claims that the delisting of wBTC caused massive financial losses and eroded consumer trust in wBTC. According to BiT Global’s lawyers, this decision by Coinbase represents an attempt to monopolize the wrapped Bitcoin market, in violation of the Sherman Act on anti-competitive practices.
More than $1 billion in damages
The complaint seeks to obtain damages exceeding $1 billion and includes requests for injunctive measures to prevent further harm. Kevin Kneupper, the lawyer representing BiT Global, stated: “We believe this decision sets a terrible precedent for the entire cryptocurrency space. If a platform as large as Coinbase can delist a crypto just at the moment when it launches its own competing product (cbBTC), who is safe? And who will be next?”.
Coinbase, for its part, maintains that its decision is based on a regular assessment of the assets listed on its crypto platform.
This case could have significant repercussions on the crypto market, particularly concerning listing practices and competition between exchanges. Investors will closely follow the progress of this trial to see how it might influence the future of regulation and competition in this ever-growing sector.
