Bit Global Files Lawsuit Against Coinbase For Delisting WBTC
In the latest development, Bit Global filed a lawsuit against the cryptocurrency trading platform Coinbase Global Inc, claiming that Coinbase illegally delisted its WBTC token in order to promote competitor cbBTC.
BiT Global claimed in its complaint on December 13 that Coinbase’s decision to remove wBTC was to promote its own competing product, cbBTC, which caused huge financial losses and undermined consumer confidence in wBTC.
The lawsuit covers allegations of attempts to monopolize the Bitcoin market under the Sherman Act, allegations of predatory conduct that undermined wBTC’s market position, and allegations of false statements suggesting that wBTC failed to meet listing standards.
Lawsuit alleges Coinbase delisted WBTC to gain monopoly
The lawsuit further claims that Meme coins and tokens listed on Coinbase, such as Dogwifhat (WIF), Pepe (PEPE) and Mog Coin (MOG), have “no intrinsic value,” proving that the exchange delisted WBTC in an effort to monopolize WBTC. industry. It also reiterated that delisting WBTC in place of these meme coins proves that the exchange did not follow any clear listing standards.
“Like every centralized tech giant before it, Coinbase pays lip service to innovation in a decentralized world,” the company states in the lawsuit. “But when it comes to wrapping Bitcoin, Coinbase sees this as just another cash grab.” Notably, Coinbase launched its own wrapped Bitcoin token in September, called Coinbase Wrapped BTC, or cbBTC. Last month, WBTC was delisted for not meeting the exchange’s listing standards.
Coinbase captures market share
However, BiT Global claimed on Friday that this was an unfair business practice. BiT Global’s lawsuit states: “Coinbase decided to imitate WBTC with its own product and adopted unfair and deceptive tactics that tech giants have long used to suppress competitors.”
Cryptocurrency custodian in litigation The circulation volume of WBTC dropped by 5% within two weeks after it was removed from the shelves. They believe this is evidence that Coinbase aims to capture WBTC market share for itself.
The BitGlobal complaint notes that Coinbase’s decision to list Mog just two weeks after delisting wBTC suggests that the decision “had nothing to do with standards and everything to do with unfairly and fraudulently removing wBTC from the market.”
The lawsuit claims $1 billion!
The lawsuit was filed by Knapp Covey LLP in the Northern District of California.
“We believe this decision sets a terrible precedent for everyone in the cryptocurrency space,” attorney Kevin Knupper said. “If an exchange of Coinbase’s size can delist a cryptocurrency as it plans to launch its own competing product, So who is safe? So who is next?”
Notably, the lawsuit seeks more than $1 billion in damages and includes a request for injunctive relief to prevent further harm.
