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BiT Global Sues Coinbase Over Delisting of Wrapped Bitcoin
In a surprise move, Bit Global has taken legal action against Coinbase, alleging that the exchange’s decision to delist its Wrapped Bitcoin (WBTC) asset is an unfair business practice and a predatory tactic aimed at promoting its own rival product, Coinbase Wrapped BTC (cbBTC).
According to reports, BiT Global, the custodian behind WBTC, claims that Coinbase’s actions are part of a broader strategy to monopolize the wrapped Bitcoin market by removing competition. The lawsuit highlights a significant drop in WBTC circulation following Coinbase’s announcement of delisting, with a 5% decline over two weeks.
BiT Global argues that Coinbase’s move is not only an unfair business practice but also goes against its commitment to decentralization and innovation. The lawsuit describes Coinbase’s actions as a “cash grab” disguised as a commitment to the Ethereum blockchain and decentralized technology.
The dispute centers around WBTC, which allows Bitcoin holders to interact with Ethereum-based applications, despite the two assets being incompatible on a technical level. Coinbase had previously listed cbBTC as an alternative to WBTC in September, sparking concerns about the exchange’s priorities.
BiT Global has brought this lawsuit against Coinbase for its alleged unfair tactics and violation of federal and state laws. The move is seen by many as an escalation of the ongoing battle between the two companies over dominance in the crypto space.
WBTC’s delisting from Coinbase comes amid a backdrop of controversy surrounding BiT Global’s partnership with Justin Sun, the founder of the Tron network, who has been criticized for his influence on WBTC. Some members of the DeFi community have raised concerns about the risks associated with Justin Sun’s involvement.
The development has sent shockwaves through the cryptocurrency community, with many questioning the motives behind Coinbase’s decision. The legal battle between BiT Global and Coinbase is likely to intensify scrutiny over Coinbase’s actions in recent months.
Stay tuned for further updates on this developing story.
Source: www.crypto-news.net
