Bit Global Files $1B Lawsuit Against Coinbase Over WBTC Delisting

Digital asset custodian BiT Global has sued the American crypto exchange Coinbase over its intention to delist the wrapped Bitcoin (WBTC) token. Kneupper & Covey, the custodian’s law firm, announced today that the $1 billion lawsuit was filed in the Northern District of California.

Bit Global vs. Coinbase

The ongoing issue dates back to early August, when BitGo, WBTC’s issuer, partnered with BiT Global, a Justin Sun-affiliated firm, to share its custodial authority over WBTC. Shortly after the collaboration announcement, crypto community members on X questioned Sun’s involvement despite BitGo’s CEO and Sun’s efforts to clarify the matter.

A month later, Coinbase launched a wrapped Bitcoin token, cbBTC. Like WBTC, Coinbase’s product allowed users to migrate their BTC holdings to make them usable in other blockchain networks. This is because BTC does not natively support integration with other networks.

Interestingly, cbBTC was quickly embraced by many in the crypto industry, garnering $100 million on the first day of trading. Current data shows that the crypto has soaked over $2 billion in market cap.

Last month, Coinbase announced plans to delist WBTC, explaining that it failed to meet its standards. The delisting is scheduled for December 19th.

$1B Lawsuit

Fast-forward to the present, BiT Global decided to sue the crypto exchange. The custodian argued that Coinbase’s action would affect its business operations and crypto users.

The law firm representing Bit Global also referenced Coinbase’s recent launch of a wrapped Bitcoin token, explaining that the American crypto exchange wants to push WBTC out of the country. This move could adversely affect WBTC’s market metric since Coinbase is leading among U.S.-based crypto exchanges.

Attorney Kevin Kneupper stated while defending his client:

“We believe this decision sets a terrible precedent for everyone in the cryptocurrency space. If an exchange of Coinbase’s size can delist a cryptocurrency just as it plans to launch its own competing product, who’s safe? And who’s next?”

The law firm also referenced Coinbase’s recent listing spree with memecoins, emphasizing that the exchange readily lists these speculative assets but “suddenly claimed that wBTC doesn’t” meet its standard anymore.

At the time of writing, Coinbase has yet to comment on the matter publicly.