BiT Global, a custodian of Wrapped Bitcoin (wBTC), has filed a lawsuit against Coinbase following the delisting of wBTC from the popular US-based crypto exchange in November. The new court documents reveal that BiT Global accuses Coinbase of using wBTC as a “cash grab” before removing it from the platform and introducing its own version of the asset, cbBTC.
The complaint filed by BiT Global claims that Coinbase saw wBTC as a competitor offering an innovative product that allowed users to leverage the value of Bitcoin on the Ethereum blockchain in new ways. However, once the value of wBTC became apparent, Coinbase allegedly delisted it and launched cbBTC, a similar tokenized representation of Bitcoin.
BiT Global draws parallels between Coinbase’s actions and past behaviors of tech giants like Microsoft, Google, and Facebook, alleging that Coinbase’s actions were in violation of US commerce laws. The lawsuit argues that Coinbase engaged in predatory and anticompetitive conduct to monopolize the market and intentionally debase wBTC.
Coinbase announced the suspension of wBTC trading on December 19th after conducting a review, citing the launch of cbBTC earlier in the year. At the time of writing, wBTC is trading at $101,122 with a 1.7% increase in the last 24 hours.
The legal battle between BiT Global and Coinbase highlights the competitive landscape within the cryptocurrency industry and the challenges faced by custodians and exchanges. As the case unfolds, the outcome could have implications for how digital assets are managed and traded in the future.
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As the lawsuit unfolds, the cryptocurrency community will be watching closely to see how the legal battle between BiT Global and Coinbase impacts the broader industry. Stay tuned for more updates as the case progresses.