Coinbase has been sued by BiT Global for over $1 billion. BiT Global alleges that Coinbase unlawfully delisted its WBTC token to promote its own competing product, cbBTC. They claim that this decision caused significant financial losses and damaged consumer confidence in wBTC. The lawsuit also argues that Coinbase’s listings of meme coins and tokens with “no inherent value” indicate a monopoly-seeking behavior. BiT Global asserts that the exchange did not follow defined listing standards in delisting WBTC.
In response to the lawsuit, Coinbase’s Chief Legal Officer, Paul Grewal, defended the exchange’s approach and emphasized its commitment to high listing standards. Grewal addressed criticism of the exchange’s token listing and delisting practices, particularly in relation to Wrapped Bitcoin. He stated that when an asset no longer meets their listing standards, they will drop it, and when another asset can meet or exceed market requirements without sacrificing those standards, they will list it.
Grewal’s statement received backlash from the community, including Tron founder Justin Sun. Sun questioned Coinbase’s transparency and the coordination between Grewal’s statement and earlier remarks made by Coinbase CEO Brian Armstrong. Armstrong had stated that the exchange is “asset agnostic” and believes that consumers should have a choice in the crypto economy.
BiT Global argues that Coinbase’s actions were intended to favor cbBTC and gain market dominance. Coinbase announced the delisting of WBTC on November 19, citing undisclosed failures to meet their listing standards.
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