cryptojournalist
Crypto giant Coinbase is facing a $1 billion lawsuit from BiT Global, a Hong Kong-based exchange, after it decided to delist Wrapped Bitcoin (wBTC) in November. BiT Global claims Coinbase removed wBTC to promote its own version, cbBTC, and caused massive financial losses.
Why This Matters
According to BiT Global, Coinbase’s decision wasn’t about token standards—it was about killing off competition. The lawsuit accuses Coinbase of:
Trying to take over the wrapped Bitcoin market (violating the Sherman Act*).
Using unfair tactics to damage wBTC.
Misleading users by saying wBTC didn’t meet listing requirements.
Coinbase announced the delisting on November 19 but still lists riskier “memecoins.” BiT Global says this shows the move was about competition, not compliance.
The Legal Battle
BiT Global, which oversees wBTC reserves with BitGo, filed the lawsuit in California. Their lawyer, Kevin Kneupper, warned that this could affect the entire crypto industry:
“If Coinbase can delist tokens to push its own, no one is safe.”
The lawsuit demands over $1 billion in damages and an injunction to stop further harm. Coinbase hasn’t responded directly but previously said the delisting was part of a routine review.
*Sherman Act: A U.S. law aimed at preventing monopolies and promoting fair competition.
