BitGlobal claims Coinbase delisted WBTC to push its token cbBTC, alleging predatory tactics and market monopoly attempts.
WBTC’s circulation dropped 5% after Coinbase’s delisting announcement, impacting traders relying on it for Ethereum-based DeFi platforms.
Coinbase faces scrutiny over token listings, delisting stablecoins like USDT in Europe while favoring MiCA-compliant assets like USDC.
BitGlobal, headed by Tron founder Justin Sun, has filed a $1 billion lawsuit against Coinbase, alleging antitrust violations related to the delisting of Wrapped Bitcoin (WBTC). The lawsuit claims Coinbase removed WBTC to promote its competing token, cbBTC, launched in September. BitGlobal, a custodian of WBTC, accused the exchange of predatory tactics aimed at monopolizing the wrapped Bitcoin market.
https://twitter.com/BSCNews/status/1867649215117324309
Delisting Sparks Allegations of Unfair Competition
In November, Coinbase announced plans to delist WBTC, the 18th largest cryptocurrency with a $13.7 billion market cap. The decision, set to take effect on December 19, was attributed to the token no longer meeting the exchange’s listing standards.
BitGlobal argues this reasoning contradicts Coinbase’s approval of speculative meme coins, such as $PEPE and $MOG. The lawsuit alleges that the real motivation was to eliminate competition for cbBTC, giving Coinbase an unfair advantage in the market.
BitGlobal further claims Coinbase's actions led to a 5% drop in WBTC circulation within two weeks. This decline reportedly disrupted traders who rely on WBTC to access Ethereum-based decentralized finance (DeFi) platforms. The custodian stated that these actions violated both federal and state laws, causing significant financial harm.
WBTC Delisting Draws Criticism Amid Wider Token Review
Wrapped Bitcoin, an ERC-20 token launched in 2018, allows Bitcoin to be used across Ethereum-based platforms. The delisting decision faced criticism from the WBTC team, who called out the lack of prior consultation. BitGlobal’s lawsuit emphasized the token’s role in DeFi, arguing Coinbase’s move was a calculated attempt to dominate this functionality.
Coinbase’s chief legal officer, Paul Grewal, responded publicly on X, asserting the exchange’s commitment to listing standards. Grewal stated Coinbase evaluates assets rigorously, adding that WBTC no longer met those criteria.
https://twitter.com/iampaulgrewal/status/1867706503496708260
Coinbase Faces Broader Scrutiny Over Token Listings
This lawsuit comes as Coinbase reviews its token offerings in Europe. Recently, the exchange announced plans to delist stablecoins like Tether’s USDT, citing non-compliance with MiCA regulations. However, Coinbase continues to support fully compliant assets, including Circle’s USDC and EUR Coin (EURC).
