BiT Global is taking legal action against Coinbase, charging that the recent delisting of wrapped Bitcoin (wBTC) from the exchange was executed unfairly, seemingly to give preference to Coinbase’s own cryptocurrency product, Coinbase Wrapped BTC (cbBTC).
The company challenges Coinbase’s explanation for the delisting, which they claim relied on “listing standards.” BiT Global argues that this rationale is deceptive, particularly in light of Coinbase’s recent acceptance of various meme tokens like PEPE, WIF, and MOG.
Allegations and Legal Action
The lawsuit, filed on December 13, accuses Coinbase of violating federal antitrust laws.
According to BiT Global, the exchange’s actions are an attempt to gain control over the wrapped Bitcoin market and to suppress competition unlawfully.
BiT Global contends that Coinbase’s claims about wBTC not meeting the exchange’s criteria are inconsistent with the listings of meme coins that followed wBTC’s removal.
The firm points out that Coinbase approved PEPE, WIF, and MOG just weeks after delisting wBTC.
Meme Tokens vs. wBTC
It’s noteworthy that MOG has been described as a digital asset devoid of intrinsic value or the potential for financial return.
BiT Global cites a disclaimer from MOG that warns potential investors, emphasizing that while some individuals might be experiencing significant profits from cryptocurrency investments, others may not have the same luck.
The disclaimer explicitly states that MOG is intended purely for entertainment.
The lawsuit argues that the swift move to list MOG shortly after wBTC’s delisting reveals that Coinbase’s actions were neither based on legitimate standards nor fair practices, but rather a strategic maneuver to push wBTC out of the market.
Claims and Damages
Additionally, BiT Global claims that in announcing the delisting, Coinbase provided false and misleading information regarding wBTC’s compliance with its listing requirements.
The legal action seeks damages of over $1 billion and requests injunctive relief to prevent further harm to BiT Global.
This lawsuit arises following Coinbase’s declaration on November 19 about suspending trading of wBTC, marking a significant turn in the ongoing developments surrounding wrapped Bitcoin on the exchange.
Source: Crypto Briefing
