Dropping the Suit: BiT Global Calls it Quits against Coinbase over WBTC Delisting
BiT Global, connected to Justin Sun, discontinues legal action against Coinbase concerning Wrapped Bitcoin issue.
In a shocking turn of events, digital asset custodian BiT Global has decided to drop their lawsuit against Coinbase, ending their contentious dispute over the delisting of Wrapped Bitcoin (WBTC). The two parties agreed on Friday to dismiss the lawsuit with prejudice, which means the matter cannot be revisited in the future, as per court filings.
BiT Global filed the lawsuit against Coinbase in December when the crypto exchange decided to cease listing WBTC, following BiT Global's plans to involve itself with the token. Though many wrapped Bitcoin tokens exist, WBTC is the market leader, boasting a market capitalization of $13.88 billion and securing the 12th spot among the world's largest crypto tokens.
The controversy surrounding WBTC began in August when BiT Go, its chief custodian, announced a partnership with BiT Global, a Hong Kong-based custodian, to diversify the jurisdictions where the Bitcoin reserves backing WBTC were held. This decision faced backlash in the crypto community due to BiT Global's connections to Justin Sun, a controversial crypto entrepreneur.
In response, Coinbase unveiled plans to launch its own WBTC competitor, cbBTC, and subsequently delisted WBTC from its exchange in December, citing lack of alignment with its listing standards. BiT Global responded by filing a lawsuit, arguing the delisting was a predatory "cash grab" aimed at boosting cbBTC by undermining its main competitor. Coinbase countered that the move was motivated by concerns about Sun's involvement.
The delisting was denied a stay by a federal judge, who stated there was insufficient evidence that the move would cause irreparable harm to BiT Global. Coinbase's Chief Legal Officer, Paul Grewal, revealed on Monday that the exchange currently has "no plans" to re-list WBTC.
Since the delisting, Coinbase's cbBTC has seen a significant surge in market share. Despite starting with a smaller market capitalization, cbBTC has more than tripled in value since December when Bitcoin's price was similar to its current level.
As for the reasons behind BiT Global's decision to drop the lawsuit, they have yet to comment on the matter. However, a federal judge overseeing the case earlier indicated a leaning towards dismissing the case in its entirety.
Sources:
- Filing - Coinbase and BiT Global agree to dismiss lawsuit
- BitGo Announcement - BitGo partners with BiT Global to diversify WBTC custody
- Justin Sun Involvement - Sun's involvement poses unacceptable risk, claim crypto leaders
- Coinbase Competition - Coinbase to launch cbBTC, potential competition for WBTC
- Federal Judge Ruling - Federal Judge declines to halt WBTC delisting
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- Despite BiT Global's legal battle with Coinbase over Wrapped Bitcoin (WBTC) delisting, the two parties have agreed to drop their lawsuit on Friday, as per court filings.
- Coinbase, a leading crypto exchange, decided to cease listing WBTC in December, following BiT Global's plans to involve itself with the digital asset.
- BiT Global filed a lawsuit against Coinbase, arguing the delisting was a predatory "cash grab" aimed at boosting Coinbase's own WBTC competitor, cbBTC.
- Wrapped Bitcoin (WBTC) is a significant digital asset, with a market capitalization of $13.88 billion, securing the 12th spot among the world's largest crypto tokens.
- In response, Coinbase announced plans to launch cbBTC and delisted WBTC from its exchange, citing lack of alignment with its listing standards.
- Since the delisting, Coinbase's cbBTC has seen a significant surge in market share, more than tripling in value since December when Bitcoin's price was similar to its current level.
- The controversy surrounding WBTC began in August when BiT Go, its chief custodian, announced a partnership with BiT Global, which faced backlash due to BiT Global's connections to Justin Sun, a controversial crypto entrepreneur.
