Coinbase sued by BiT Global for $1 billion in damages for delisting WBTC! Justin Sun joins the fray: Is there a double standard?

The well-known exchange Coinbase previously announced it would suspend trading of wrapped Bitcoin WBTC starting 12/19, due to WBTC not passing the listing standards. This move sparked dissatisfaction from WBTC's Hong Kong custodian BiT Global, which filed a lawsuit against Coinbase on 12/13, alleging 'market monopolization' and seeking $1 billion in damages, leading to widespread discussion. Even Tron founder Justin Sun exchanged barbs with Coinbase's legal representative Grewal on Twitter.

The lawsuit claims Coinbase is attempting to monopolize the market, also harming BitGo's business.

On 12/13, BiT Global formally filed a lawsuit in the U.S. District Court for the Northern District of California, accusing Coinbase of attempting to monopolize the market by delisting wrapped Bitcoin WBTC, severely damaging market competitiveness.

The lawsuit states that Coinbase claims WBTC does not meet listing standards but did not explain the reasons, instead seizing the opportunity to launch its similar product cbBTC, weakening WBTC's market position and causing a significant drop in WBTC's price.

BiT Global also pointed out that they had already become a co-custodian of WBTC with Justin Sun's custodian BitGo as early as August, and this time Coinbase's actions have completely harmed the business of both companies.

BiT Global and Coinbase Lawsuit

(Concerns arise over Sun's involvement in WBTC! BitGo and BiT Global reach a new partnership, and MakerDAO proposal initiates risk control.)

Claims WBTC does not meet standards but lists a bunch of meme coins, sarcastically implying Coinbase's double standards.

BiT Global added in the lawsuit that Coinbase claims WBTC does not meet listing standards but cannot provide reasons, resulting in a sharp decline in WBTC's price.

In addition, Coinbase has recently listed a large number of meme coins like $PEPE and $WIF, yet used 'not meeting listing standards' as a reason for WBTC, implying that Coinbase is a 'double standard' entity.

The lawsuit claims WBTC does not meet standards but meme coins are listed, implying Coinbase's double standards.

BiT Global's lawyer Kevin Kneupper stated: 'If a well-known exchange like Coinbase can delist a competitor's product while launching its own, then other projects may also become targets, which is entirely detrimental to the entire industry.'

Coinbase responded that the delisting was due to not meeting standards.

In response to BiT Global's allegations, Coinbase's legal chief Paul Grewal reiterated on 12/14 the listing and delisting standard procedures of their exchange: 'When an asset does not meet our listing standards, we will delist it. When new assets meet or exceed market demand, we will consider listing them. Thank you, BiT Global, for the opportunity to demonstrate this to the U.S. federal court and global cryptocurrency operators.'

Coinbase's legal response reiterates its listing and delisting standards, while the industry questions Coinbase's double standards, and Justin Sun joins the fray.

But Grewal's response did not quell the controversy. Tron founder Justin Sun, upon learning of the news, cited Coinbase CEO Brian Armstrong's previous comments on Twitter to counter Grewal, pointing out that Armstrong had stated Coinbase is 'quite neutral and encourages market diversification. As an exchange, it should provide consumers with more choices.'

However, the actions being taken now seem to contradict the original intentions. Justin Sun's response has also sparked questions among users about whether Coinbase's stance reflects double standards.

Justin Sun quoted Coinbase CEO Armstrong's post questioning Coinbase's legal market competition behavior, provoking thought.

Coinbase had already announced on Twitter in August that it would launch a new wrapped token cbBTC, and officially released it on 9/12 on the Ethereum and Base chains, also planning to bring cbBTC to the Solana chain.

However, BiT Global believes that Coinbase's actions, seemingly to promote its own product cbBTC by delisting a competitor's similar product, do not align with fair competition principles. BiT Global is not only seeking $1 billion in damages from Coinbase but also hopes for a federal court injunction to prevent similar actions from occurring again, with the case still under review.

This article states that Coinbase is sued by BiT Global for $1 billion in damages for delisting WBTC! Justin Sun joins the fray: There seems to be a double standard. Originally appeared on Chain News ABMedia.