BiT Global filed a lawsuit against Coinbase over the delisting of wrapped Bitcoin (wBTC). In a court filing on January 21, the US-based cryptocurrency exchange justified its actions, claiming that the decision was motivated by potential risks linked with Tron founder Justin Sun, with whom BiT Global is affiliated.
BiT Global filed a legal action in December 2024, claiming that Coinbase’s move affected the wBTC market. However, the exchange asserted that it made its decision following a comprehensive internal review, prioritizing user safety and maintaining the integrity of the platform. According to Coinbase, Justin Sun’s leadership over wBTC created an “unacceptable risk” due to his history of alleged market manipulation and regulatory violations.
The company’s legal team stated, “Coinbase has no obligation to support an asset that its users deem too risky.” The filing emphasized BiT Global’s inability to substantiate antitrust charges or furnish proof of any harm resulting from the delisting.
The lawsuit also requested a restraining order to stop Coinbase’s actions, but the judge refused the request. Despite the setback, BiT Global pursued legal action. In its latest motion, Coinbase requested the court to dismiss the lawsuit outright, asserting that the complaint lacks merit and is unresolvable.
We have scheduled a hearing on the dismissal request for April 3. Coinbase reiterated its commitment to protecting user interests and providing a trustworthy trading environment, highlighting that its decisions are consistent with these goals.
Meanwhile, Coinbase faces additional legal problems, including ongoing litigation with the Securities and Exchange Commission for regulatory clarity for cryptocurrency activities.
