Coinbase Responds to Lawsuit From BiT Global Over wBTC Delisting

Coinbase has issued a response to a lawsuit filed by BiT World, an organization affiliated with Justin Solar, after the alternate introduced it could delist wrapped Bitcoin (wBTC) on Dec. 19.

The lawsuit arose after Coinbase raised considerations concerning the brand new custodianship of wBTC, which is now partially managed by BiT World and its Singaporean subsidiary.

This shift adopted BitGo’s announcement in August that it could share two of the three keys needed for wBTC operations with these entities, a transfer Coinbase described as rising protocol threat.

Coinbase’s Chief Authorized Officer, Paul Grewal, acknowledged on X that the corporate has filed a response to BiT World’s request for a brief restraining order, asserting that the lawsuit lacks benefit. Grewal emphasised the choice to delist wBTC was primarily based on rigorous inside processes resulting from considerations about Solar’s involvement and allegations of previous monetary misconduct.

BiT World has alleged that Coinbase’s actions are anti-competitive and that the alternate engaged in “predatory practices” to advertise its personal wrapped Bitcoin product, cbBTC, which has a market capitalization of round $2 billion in comparison with wBTC’s $13.4 billion.

The lawsuit additionally contends that Coinbase’s delisting of wBTC raises points underneath federal legal guidelines designed to stop monopolistic conduct.

In its protection, Coinbase identified that its platform accounted for lower than 1% of wBTC transactions, arguing that this diminishes BiT World’s damages claims.

The alternate has confronted scrutiny concerning Solar’s previous regulatory points, together with investigations by the U.S. Securities and Trade Fee and the FBI.

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