Coinbase’s legal team, led by Chief Legal Officer Paul Grewal, has responded to a $1 billion lawsuit filed by BiT Global Digital. The claim accuses the cryptocurrency exchange of anticompetitive practices following its decision to delist Wrapped Bitcoin (wBTC) in November. The lawsuit alleges that this move was intended to boost Coinbase BTC (cbBTC), the company’s own Bitcoin-backed token, which was introduced earlier this year.
Filed on December 13, the lawsuit centers on accusations that Coinbase’s actions disrupted the market for wBTC. According to BiT Global, the delisting was a calculated effort to undermine wBTC’s standing and position cbBTC as a dominant player in the market. The legal filing also claims that Coinbase issued misleading statements about wBTC’s compliance with listing standards, which were used to justify its removal.
Coinbase began developing cbBTC earlier this year as part of an effort to expand the adoption of Bitcoin-native decentralized finance (DeFi), also known as BTCFi. While the token was initially seen as a positive step for the ecosystem, the abrupt delisting of wBTC sparked backlash from members of the crypto industry, who questioned the exchange’s motives.
In response, Grewal defended Coinbase’s actions, stating that the company adheres to strict listing and delisting criteria. He explained that any asset failing to meet these standards is removed, while new assets meeting or exceeding them are considered for inclusion. A Coinbase spokesperson echoed these sentiments, asserting that the decision to delist wBTC was based on specific violations of the company’s policies, though these were not disclosed.
The crypto community, however, has expressed skepticism. Tron founder Justin Sun publicly criticized Coinbase, suggesting that its practices contradict earlier statements made by CEO Brian Armstrong, who described the platform as “asset-agnostic.” Sun shared evidence to challenge Coinbase’s claim of impartiality, further fueling debate over the company’s transparency.
The lawsuit, filed in the U.S. District Court for the Northern District of California, accuses Coinbase of monopolistic behavior in violation of the Sherman Antitrust Act. BiT Global alleges that the exchange deliberately acted to harm wBTC’s market share while prioritizing the launch of cbBTC. The legal team representing BiT Global also pointed to Coinbase’s willingness to list less rigorous tokens, such as memecoins, as evidence of inconsistent standards.
This case has sparked broader discussions about the responsibilities of crypto exchanges and the ethical implications of their listing decisions. As one of the largest cryptocurrency exchanges globally, Coinbase’s actions often set the tone for the industry. The outcome of this lawsuit could have lasting consequences, potentially reshaping how exchanges manage competition and uphold trust.
Coinbase’s response to the lawsuit and its handling of wBTC’s delisting will likely be closely monitored by regulators and market participants alike. These developments highlight the ongoing tension between innovation, competition, and accountability in the rapidly evolving crypto landscape.