Coinbase and BiT Global End WBTC Dispute with Legal Settlement

American crypto exchange Coinbase and digital asset custodian BiT Global have reached a legal settlement, ending their dispute over the delisting of BiT Global’s Wrapped Bitcoin (wBTC) token from the Coinbase platform.

According to a joint court filing, BiT Global has agreed to dismiss its lawsuit against the crypto exchange with prejudice, meaning the case cannot be reopened.

BiT Global Dismisses Its $1B Lawsuit

BiT Global voluntarily dismissed its antitrust and unfair competition lawsuit against Coinbase with prejudice. This followed an adverse ruling from a federal court in San Francisco, which denied a temporary restraining order and suggested the potential dismissal of the case. Under the terms of the settlement, both companies have agreed to cover their legal expenses. The dismissal does not reveal any further terms of the settlement.

Following the dismissal, Paul Grewal, Coinbase’s Chief Legal Officer, took to X to highlight that the decision supports Coinbase’s right to manage security and risk for its users. This came after BiT Global’s counsel had vowed to take the case to trial.

With the lawsuit now behind them, Coinbase and BiT Global can move forward, each pursuing their respective interests in the evolving crypto ecosystem.

As the crypto market continues to evolve, such collaborations will be crucial in driving innovation and growth.

Background of the Dispute

The dispute arose when BiT Global, the issuer of wBTC, changed its management structure, prompting Coinbase to reconsider its support for the token. The lawsuit alleged that Coinbase’s decision to delist wBTC was unjustified and harmed the token’s liquidity and reputation. BiT Global claimed that Coinbase’s move was motivated by its competing interest in the cbBTC token, which was launched just two months before the delisting announcement. However, Coinbase maintained that the decision was based on “unacceptable risk.”

This was associated with the tokenized BTC falling into the hands of Justin Sun, a Chinese-born crypto billionaire who became affiliated with wBTC last year. Following Justin Sun’s appointment as an advisor, World Liberty Financial switched its $10 million worth of cbBTC to wBTC.