In a significant legal move, Bit Global has initiated a lawsuit against the renowned cryptocurrency trading platform, Coinbase Global Inc. The core of the lawsuit revolves around claims that Coinbase unlawfully delisted Bit Global’s WBTC token to promote its own rival token, cbBTC. This development has sparked considerable attention in the crypto community, as it highlights the intense competition and strategic maneuvers within the industry.
Lawsuit Claims Coinbase Delisted WBTC to Gain Monopoly
The lawsuit, filed on December 13, accuses Coinbase of strategically removing WBTC from its listings to introduce its competing product, cbBTC. Bit Global alleges that this move by Coinbase led to substantial financial losses for WBTC and eroded consumer confidence in the token. The suit argues that Coinbase’s actions represent an attempt to monopolize the wrapped Bitcoin market, a claim made under the Sherman Act. Furthermore, the lawsuit highlights alleged predatory practices by Coinbase intended to weaken WBTC’s market position. It also accuses the exchange of making false statements suggesting that WBTC did not meet listing standards.
Coinbase Capturing Market Share
Bit Global’s lawsuit underscores its belief that Coinbase’s decision to delist WBTC was driven by the desire to strengthen its own market position. The complaint highlights Coinbase’s listings of meme coins and tokens like Dogwifhat (WIF), Pepe (PEPE), and Mog Coin (MOG), which Bit Global claims have “no inherent value.” This, according to the lawsuit, is evidence that Coinbase did not adhere to any defined listing standards when it decided to delist WBTC.
The lawsuit highlights the launch of Coinbase’s own wrapped Bitcoin token, cbBTC, in September, and the subsequent delisting of WBTC, citing non-compliance with listing standards. Bit Global argues that these actions reflect an unfair business practice aimed at capturing WBTC’s market share for Coinbase’s benefit. The complaint further points out that WBTC’s circulation dropped by 5% within two weeks of its delisting, reinforcing the argument that Coinbase’s actions were intended to capture market share.
Lawsuit Seeks $1 Billion!
The legal proceedings are being handled by the law firm Kneupper & Covey in the Northern District of California. Attorney Kevin Kneupper emphasized the broader implications of the case, stating, “We believe this decision sets a terrible precedent for everyone in the cryptocurrency space. If an exchange of Coinbase’s size can delist a cryptocurrency just as it plans to launch its own competing product, who’s safe? And who’s next?”
The lawsuit seeks damages exceeding $1 billion, alongside demands for injunctive relief to prevent further harm. This legal battle between Bit Global and Coinbase not only highlights the competitive dynamics within the cryptocurrency market but also raises questions about fair business practices and the influence of major exchanges on the industry.
