Coinbase has filed a motion to dismiss a lawsuit brought by BiT Global over the cryptocurrency exchange’s decision to delist wrapped Bitcoin (wBTC) in favor of promoting its own product, cbBTC.
Coinbase’s Defense
In a January 21 filing with the U.S. District Court for the Northern District of California, Coinbase’s legal team argued that the lawsuit should be dismissed in its entirety, citing BiT Global’s affiliation with Tron founder Justin Sun as a key factor in its decision to delist wBTC.
The exchange stated that its concerns stemmed from “the unacceptable risk that control of wBTC would fall into the hands of Mr. Sun,” referencing previous allegations of fraud and market manipulation leveled against him by U.S. authorities.
Coinbase’s legal team added:
“The Court should dismiss BiT’s complaint in full. And it should do so with prejudice, as the most fundamental of these pleading failures… cannot possibly be cured.”
The filing further asserted that Coinbase’s decision did not constitute exclusionary conduct, harm the market, or result in “antitrust injury,” as alleged by BiT Global.
Background on the Dispute
Coinbase announced in November 2024 that it would suspend trading of wBTC starting December 19. In response, BiT Global filed a lawsuit on December 13, claiming the delisting harmed the wBTC market and unfairly promoted Coinbase’s competing product, cbBTC.
A judge previously denied BiT Global’s request for a restraining order to prevent Coinbase from delisting wBTC.
Concerns Over Justin Sun’s Involvement
The dispute partly centers on control of wBTC’s reserves, which are managed by custodian BitGo. In August 2024, BitGo announced it would share control of wBTC reserves with BiT Global in a partnership involving Justin Sun.
Coinbase has raised concerns in court filings about the risks associated with Sun’s involvement, pointing to ongoing complaints against him by U.S. authorities for alleged fraud and securities violations.
The court is scheduled to hear Coinbase’s motion to dismiss on April 3, 2025. If the motion is granted with prejudice, BiT Global would be unable to refile the complaint.
In addition to this case, Coinbase continues to face a separate legal battle with the U.S. Securities and Exchange Commission (SEC), stemming from a 2023 lawsuit. The exchange has also been actively pushing for clearer crypto regulations in the United States.
