Crypto exchange Coinbase is facing a $1 billion lawsuit filed by BiT Global Digital over claims of market manipulation and monopolization. The complaint alleges Coinbase delisted Wrapped Bitcoin (WBTC) to favor its own product, Coinbase Wrapped Bitcoin (cbBTC).
The lawsuit, filed on December 13, accuses Coinbase of attempting to dominate the Wrapped Bitcoin market in violation of the Sherman Act. BiT Global claims Coinbase engaged in predatory practices to undermine WBTC’s market position and made false statements implying WBTC failed to meet the platform’s listing standards.
Coinbase Responds to Allegations
A day after the lawsuit was filed, Coinbase’s Chief Legal Officer, Paul Grewal, defended the exchange’s listing policies. Grewal emphasized that Coinbase follows strict standards when evaluating assets.
“When an asset no longer meets our listing standards, we will drop it. When another asset can meet or exceed market requirements without sacrificing those standards, we will list it,” Grewal said in a post on X (formerly Twitter).
Grewal’s response suggests Coinbase’s decision to delist WBTC was based on its internal policies rather than attempts to stifle competition.
The Core of the Lawsuit
BiT Global accuses Coinbase of:
- Attempted monopolization under the Sherman Act to dominate the Wrapped Bitcoin market.
- Predatory practices aimed at weakening WBTC’s market position.
- Misleading statements that created doubts about WBTC’s compliance with Coinbase’s standards.
The lawsuit highlights ongoing tensions in the crypto industry surrounding competition and asset listings. Whether Coinbase acted within its rights or engaged in anti-competitive behavior will be determined as the case unfolds.
