Coinbase faces a $1 billion lawsuit for delisting Wrapped Bitcoin, accused of favoring its cbBTC token.
BiT Global alleges Coinbase used false claims to delist wBTC, violating antitrust laws under the Sherman Act.
Coinbase defends its wBTC delisting, citing strict standards, amid accusations of market manipulation.
Cryptocurrency trading platform Coinbase is facing a $1 billion lawsuit filed by BiT Global Digital Holdings Ltd. According to the lawsuit, in November, Coinbase intentionally removed wBTC from buying and selling to promote a similar Bitcoin-based token it has—Coinbase BTC or cbBTC.
As stated in the Dec. 13 complaint, the delisting was a strategic maneuver to dominate the market in wrapped Bitcoin. The lawsuit claims Coinbase violates the Sherman Act since it invented relaxing strategies to dominate its native token.
According to BiT Global, Coinbase made misleading statements about wBTC and listing standards for its platform. According to the suit, these claims were made to damage wBTC’s position in the market while benefitting cbBTC. This comes after Coinbase operators announced that it would no longer list wBTC because it failed to meet some listing standards as of December 19, 2024. BiT Global’s attorneys argue that the timing of the delisting brings into question the exchange’s motives since Coinbase hinted at the creation of cbBTC in recent months.
Paul Grewal Defends Coinbase's Listing Standards
The Chief Legal Officer at Coinbase, Paul Grewal, dismissed the allegations by stating that Coinbase had high listing and delisting standards. Grewal pointed out that the exchange reviews the assets in its possession from time to time to determine their fitness for the market. He also mentioned that Coinbase has a policy of delisting tokens that do not meet safety and illegality policy requirements and launching tokens that meet these criteria or go beyond them.
The timing of wBTC has received criticism from the crypto community, with various personalities in the industry questioning Coinbase’s transparency. Tron founder Justin Sun refuted Grewal’s claims by referencing comments made by Coinbase CEO Brian Armstrong, who understood Coinbase as ‘asset agnostic.’ Sun alleged that Coinbase was hypocritical on consumer sovereignty and free markets in the past.
https://twitter.com/justinsuntron/status/1867783580652277874
In response, Grewal argued that the listing standards focus on the legal and safety aspects rather than the convenience. He dismissed Sun’s criticism of selection and asserted his readiness to answer all the allegations when the matter was before the court.
Allegations of High Listing Costs Add to the Controversy
Justin Sun also raised further accusations about Coinbase’s listing policies, stating that the exchange asked for a large amount of Bitcoin and TRX tokens in exchange for a listing. Though Armstrong has previously mentioned that Coinbase does not charge listing fees, these claims point to alleged inconsistencies in Coinbase’s operation.
A representative of Coinbase reaffirmed the company’s commitment to maintaining integrity in its token listings. They noted that the decision to delist stocks pertains to violations of the exchange standards and not personal interests. However, BiT Global’s lawsuit and mass outrage have pressured Coinbase over its operations.
The post Coinbase faces $1 billion lawsuit over wBTC delisting appeared first on Crypto News Land.
