Bit Global Files Lawsuit Against Coinbase Over Allegations Of Breaching Antitrust Laws By Delisting Wbtc

BiT Global has revenge a suit against Coinbase, nan largest crypto trading level successful nan United States, according to a Dec. 13 tribunal filing.

The Justin Sun-linked crypto custodian alleged that nan US speech unfairly removed wrapped Bitcoin (WBTC) from its level to favour its in-house product, Coinbase Wrapped Bitcoin (cbBTC).

Antitrust violations

According to nan tribunal filing, Coinbase is leveraging its power successful nan crypto marketplace to suppress competition. BiT Global accused nan speech of violating antitrust laws by replacing WBTC pinch cbBTC to found power complete nan wrapped Bitcoin market.

The title noted that Coinbase’s actions are not only anti-competitive but strategically aimed astatine expanding its transaction revenues because transaction fees connected its level are expected to emergence arsenic cbBTC gains traction.

The filing furthered:

“On accusation and belief, Coinbase utilized this language—that it would not complaint wrapping/unwrapping fees ‘today’—because it plans to do truthful erstwhile it has unfairly eliminated nan competition.”

BiT Global disputed Coinbase’s declare that WBTC was removed owed to “listing standards,” citing nan exchange’s caller inclusion of meme coins for illustration PEPE and MOG arsenic evidence.

According to nan filing, these actions uncover that nan delisting was not astir value but alternatively an effort to seizure WBTC’s marketplace position. It added:

“The determination to let users to waste and acquisition these memecoins makes clear that Coinbase did not delist WBTC because of immoderate listing standard, but because Coinbase coveted WBTC’s marketplace stock and wanted it for itself.”

Through this lawsuit, BiT Global seeks to reconstruct title and forestall further centralization of power. The patient intends to halt nan delisting of WBTC and protect decentralized invention successful nan crypto space.

The wrapped Bitcoin market

Coinbase’s determination to delist wBTC comes aft a turbulent twelvemonth for nan asset. BiT Global became a cardinal custodian for WBTC this year, pursuing BitGo’s move to administer custody power to aggregate entities, including nan Hong Kong-based firm.

This displacement sparked concerns wrong nan DeFi organization owed to Justin Sun’s relationship to nan crypto custodian, prompting MakerDAO and Aave to reconsider WBTC arsenic a collateral asset.

While these DeFi protocols yet retained WBTC, nan developments raised questions astir its semipermanent stability. In consequence to these challenges, respective firms, including Coinbase, launched their ain wrapped Bitcoin products.

However, Coinbase’s cbBTC has quickly gained momentum to go nan second-largest wrapped Bitcoin merchandise down WBTC. The token was deployed connected Ethereum and its Layer 2 web Base successful September and presently has a marketplace capitalization of astir $2 billion.

On nan different hand, WBTC, contempt being among nan apical 20 cryptocurrencies pinch a $13.7 cardinal marketplace cap, has seen its token proviso shrink by complete 20,000 BTC owed to ongoing challenges.