Coinbase has prevailed in a legal dispute with BiT Global over the planned delisting of wrapped Bitcoin (wBTC) from its trading platform. The case gained attention after BiT Global sought a temporary restraining order (TRO) to prevent the delisting, a request the court ultimately denied.
Coinbase’s Latest Legal Win
Paul Grewal, Coinbase’s Chief Legal Officer, expressed satisfaction with the outcome. In a statement shared on X, he wrote, “BiT Global lost. Today they asked the Court to order us to stop from delisting wBTC to protect our customers. Today the Court said no.” Grewal also acknowledged the legal team at Wilmer Hale, led by Sonal Mehta, for their advocacy.
The dispute began after the crypto exchange announced the suspension of wBTC trading on November 19, 2024. The exchange cited compliance concerns following BitGo’s joint venture with BiT Global and Justin Sun. Coinbase claimed the partnership prompted a review that found wBTC no longer aligned with its standards, presenting an “unacceptable risk to its customers and the integrity of its exchange.”
BiT Global lost. Today they asked the Court to order us to stop from delisting wBTC to protect our customers. Today the Court said no. We appreciate the Court’s consideration and the outstanding advocacy of Sonal Mehta and her team at @WilmerHale.
— paulgrewal.eth (@iampaulgrewal) December 18, 2024
In court filings, the platform outlined its stringent asset evaluation process. “The trust Coinbase has expended immeasurable effort earning will be degraded and its reputation will be put at serious risk” if it were compelled to support assets that pose potential risks, the exchange argued.
A central point of the exchange’s defense was its objection to any affiliation with Justin Sun. The filing noted Sun’s alleged involvement in wBTC had caused significant concern in the crypto space. “The announcement of Sun’s involvement in wBTC created ‘panic’ and ‘FUD’ (fear, uncertainty, doubt),” the document stated.
Other Arguments
The filing also criticized BiT Global’s claims of harm, highlighting its limited role in global wBTC trading volume. “BiT’s imagined losses are speculative to boot. It never explains how delisting wBTC from a single exchange…could wreak irreparable harm,” the filing read.
The exchange underscored that wBTC remains tradable on other platforms such as Binance and Uniswap. It also noted that Coinbase Wallet users can independently store and trade wBTC.
Additionally, the company defended its decision, stating, “The statements at issue—that wBTC does not meet Coinbase’s listing standards and that Coinbase intends to suspend trading of the asset—are true.” The crypto exchange concluded that granting BiT’s motion would set a harmful precedent, arguing the lawsuit lacked urgency, as BiT delayed its filing for weeks.
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