In a significant legal confrontation, Bit Global has filed a lawsuit against the prominent cryptocurrency trading platform, Coinbase Global Inc. The legal action stems from claims that Coinbase has unjustly delisted Bit Global’s WBTC token. The lawsuit suggests that this move was strategically made to promote Coinbase’s rival product, cbBTC, thereby causing substantial financial harm and eroding consumer trust in WBTC.
Lawsuit Claims Coinbase Delisted WBTC to Gain Monopoly
The complaint, filed on December 13, accuses Coinbase of engaging in monopolistic practices by removing WBTC to bolster its own competing token, cbBTC. Bit Global argues that this delisting has led to extensive financial losses and has significantly undermined consumer confidence in WBTC. The lawsuit cites alleged violations of the Sherman Act, highlighting attempts at monopolizing the wrapped Bitcoin market, as well as employing predatory tactics to weaken WBTC’s market position.
Bit Global further contends that Coinbase’s actions reflect a broader pattern, as evidenced by the exchange’s listings of meme coins such as Dogwifhat (WIF), Pepe (PEPE), and Mog Coin (MOG), which they argue lack inherent value. This, according to the lawsuit, demonstrates that the delisting was not based on any rigorous listing standards but rather an intention to dominate the market.
Coinbase Capturing Market Share
Coinbase’s introduction of its own wrapped Bitcoin token, dubbed Coinbase Wrapped BTC (cbBTC), in September, has raised eyebrows, especially after the subsequent delisting of WBTC. Bit Global argues that these actions represent unethical business practices. The lawsuit emphasizes that after WBTC’s delisting, its circulation decreased by 5% within a mere two weeks, indicating Coinbase’s attempt to usurp WBTC’s market share.
The complaint also underscores the timing of Coinbase’s decision to list Mog Coin shortly after removing WBTC, suggesting that the decision was motivated by intentions to unfairly and fraudulently expel WBTC from the market.
Lawsuit Seeks $1 Billion!
Represented by the law firm Kneupper & Covey, Bit Global has filed its case in the Northern District of California. Attorney Kevin Kneupper expressed concerns about the implications of Coinbase’s actions, stating, “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 lawsuit seeks damages in excess of $1 billion, alongside injunctive relief to prevent further detrimental actions in the market. This case highlights the contentious dynamics within the cryptocurrency industry, where the balance between fair competition and monopolistic practices is continually scrutinized.
