BiT Global slams Coinbase with $1 billion lawsuit over delisting of WBTC
- BiT Global filed a lawsuit against crypto exchange Coinbase over its suspension of the WBTC token.
- BiT Global has requested $1 billion in damages over losses the delisting could cause.
- Coinbase's European arm announced that it would delist USDT and other stablecoins that are non-compliant with MiCA laws.
In a lawsuit filed on Friday, BiT Global, headed by Tron founder Justin Sun, charged Coinbase exchange for violating antitrust laws after it delisted the Wrapped Bitcoin (WBTC) token from its platforms and requested $1 billion in damages.
Coinbase receives $1 billion lawsuit from Justin Sun's BiT Global
BiT Global filed a $1 billion lawsuit against Coinbase, alleging that the exchange unfairly delisted Wrapped Bitcoin (WBTC) to promote its competing product, cbBTC. This comes just a few days after the token's suspension across all Coinbase platforms.
Wrapped Bitcoin (WBTC) is an ERC-20 token launched on the Ethereum blockchain in 2018. It is backed 1:1 by Bitcoin, allowing users to leverage Bitcoin's liquidity on Ethereum and other blockchain ecosystems.
The lawsuit, initiated on Friday, claims that Coinbase's reason for delisting WBTC — which it tied to listing standards— is contradicted by its recent approval of several meme coins.
BiT Global stated that WBTC's delisting wasn't due to listing standards but because Coinbase "coveted its market share and wanted it for itself."
They argued that this action violates antitrust laws and seeks damages for the significant financial losses incurred.
Coinbase announced in November that it would suspend WBTC trading on its platform on December 19, citing that the decision came from a careful review. Before the announcement, WBTC had been trading on the exchange for years.
The WBTC team responded sharply to the announcement from Coinbase, expressing their displeasure at the suddenness of the decision.
Meanwhile, Coinbase's European division announced it will delist Tether's USDT and other stablecoins that it believes do not comply with the Market in Crypto Assets (MiCA) regulations governing cryptocurrencies in Europe.
In a Wednesday broadcast to its European users, the exchange stated it would cease support for six stablecoins, including PAX, PYUSD, GUSD, GYEN, DAI and USDT.
Likewise, it would continue to support EUR Coin (EURC) and Circle's USDC, which are fully compliant with MiCA laws.
Related Articles
Tesla's Valuation Dilemma: Why It's Time to Reconsider TSLA
Tesla's stock valuation soars on the wings of future growth narratives, particularly in autonomous driving, despite current earnings not fully justifying this premium.
Micron – Huge Hit by the Market but the Growth Story is Still Here
Micron stock price crashed by 16% after the company announced the first quarter results for the new fiscal year. The market reacted badly mainly because the soft guidance itself reiterated the negative perception about memory chip stocks being notoriously cyclical.
US Stock Sector Analysis: Forecasting Q4 Sector Growth Using Machine Learning
In the ever-evolving landscape of financial markets, investors must stay ahead of market trends to make informed decisions. Whether managing a portfolio or strategizing investments, understanding which sectors are poised for growth or decline can provide a competitive advantage.
