In a significant move within the cryptocurrency sector, Bit Global has launched a legal battle against the renowned crypto trading platform, Coinbase Global Inc. This lawsuit accuses Coinbase of unlawfully delisting the WBTC token, allegedly in an attempt to promote its own rival token, cbBTC. According to the Dec. 13 complaint, Bit Global claims that Coinbase’s actions have resulted in substantial financial losses and have undermined consumer confidence in WBTC.
Lawsuit Claims Coinbase Delisted WBTC to Gain Monopoly
The lawsuit filed by Bit Global outlines serious accusations against Coinbase, suggesting that the delisting of WBTC was a strategic move to bolster its own competing product, cbBTC. This move is said to have not only caused financial damage but also eroded market confidence in WBTC. The complaint highlights that Coinbase has previously listed meme coins and tokens such as Dogwifhat (WIF), Pepe (PEPE), and Mog Coin (MOG), which, according to Bit Global, possess “no inherent value.” This action, the lawsuit argues, underscores the arbitrary nature of Coinbase’s listing standards.
Bit Global further contends that Coinbase, much like other centralized technology giants, pays lip service to the ideals of decentralization while engaging in practices that prioritize profit over innovation. The filing emphasizes that Coinbase’s introduction of its own wrapped Bitcoin token, known as Coinbase Wrapped BTC or cbBTC, was a move to sideline WBTC and capture its market share.
Coinbase Capturing Market Share
Bit Global’s allegations against Coinbase extend to claims of unfair business practices. The lawsuit states that Coinbase’s actions have been deceptive, designed to undermine competition in a manner reminiscent of tactics used by dominant tech companies. Specifically, Bit Global points to a 5% decrease in WBTC circulation within two weeks of its delisting as evidence of Coinbase’s intent to dominate the market by eliminating competition.
The timing of Coinbase’s listing of Mog Coin, just two weeks post-delisting of WBTC, is cited in the complaint as proof that the decision was not based on listing standards but rather on an agenda to unfairly and fraudulently remove WBTC from the market.
Lawsuit Seeks $1 Billion!
The legal proceedings are being conducted by the law firm Kneupper & Covey in the Northern District of California. Attorney Kevin Kneupper expressed concerns over the implications of Coinbase’s actions, suggesting that such a precedent could have widespread negative effects on the entire cryptocurrency community. “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?” Kneupper questioned.
Beyond seeking damages in excess of $1 billion, the lawsuit also demands injunctive relief to prevent further harm, aiming to set a legal precedent that protects other cryptocurrencies from similar actions.
As the legal battle unfolds, the cryptocurrency industry watches closely, as the outcome could have far-reaching implications for the dynamics of competition and fairness in the market. This case serves as a crucial reminder of the ongoing challenges and complexities within the rapidly evolving world of digital assets.
