Coinbase moved ahead to dismiss the lawsuit launched by Justin Sun-linked Bit Global regarding the delisting of Wrapped Bitcoin (wBTC). Back in November 2024, the United States’ biggest crypto exchange first announced that it was removing wBTC, then went on to tease its own wrapped Bitcoin cbBTC.
The Brian Armstrong-led exchange decided to delist wBTC because it believes Justin Sun allegedly pulls the strings of the token. Coinbase has made it clear that it is not willing to take on any sort of risk with assets that are tied to controversial figures.
The court also sided with Coinbase’s resolution.
Coinbase stands firm on wBTC delisting
Paul Grewal, the Chief Legal Officer at Coinbase, in an X post announced that the crypto exchange has moved to dismiss Bit Global’s spurious lawsuit entirely. This comes in after the US-based exchange defeated a request for a court order to reinstate a token it claims no longer meets the listing standards.
He added that there is no law that compels Coinbase to host an asset that carries an unacceptable level of risk due to its connections. The attorney directly mentioned Justin Sun and pointed out that the exchange hold every right to ensure a secure and trustworthy trading environment for its users.
No law compels Coinbase to host an asset that carries an unacceptable level of risk due to its connection with someone like @justinsuntron We have every right and responsibility to enforce our to ensure a secure and trustworthy trading environment for our users. 2/3
— Paul Grewal, Chief Legal Officer at Coinbase
As per the court filing, Coinbase argues that Bit Global’s complaint fails to present the violation of its core antitrust theory. It added that the antitrust laws exist to preserve competition and blame exclusionary conduct by dominant firms.
It added that the complaint does not even attempt to explain its choice of a product market or geographic market which are the foundations of an antitrust claim. It highlighted that Bit Global’s complaint revolves around the theory that contradicts principles that antitrust laws do not require firms to deal with one another.
Coinbase defends its cbBTC
The dispute took its toll when the US’s biggest crypto exchange decided to launch its own version of wrapped Bitcoin, cbBTC, while wBTC is still trading in the market.
Bit Global maintains that there was no concrete reason for the delisting beyond a vague “recent review” initiated by Coinbase. It added that this resolution goes against everything the DeFi and crypto industry stands for.
Bit Global has alleged that Coinbase is trying to gain a competitive advantage by keeping cbBTC ahead and removing the biggest competitor in the market. It appealed that the investors should have an option to choose the asset.
As of now, wBTC holds a market cap of $13.57 billion. Its 24-hour trading volume saw a drop of 37% to stand at $584 million. On the other hand, cbBTC has a market cap of $2.24 billion, which is 6-7 times less than wBTC. cbBTC’s 24-hour trading volume hovers around $167 million.
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