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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.