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Crypto exchange BiT Global alleges anti-competitive practices in the wrapped Bitcoin market.

BiT Global Digital Limited, a Hong Kong-based cryptocurrency exchange, has filed a lawsuit against Coinbase, seeking over $1 billion in damages.

The complaint, filed on Dec. 13, accuses Coinbase of harming the market for wrapped Bitcoin (wBTC) following its decision to delist the token in November.

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BiT Global Fights Delisting

According to BiT Global, Coinbase's actions were aimed at promoting its competing product, cbBTC, at the expense of wBTC. "It’s clear that Coinbase’s decision is an attempt to gain a competitive advantage, pushing forward their own wrapped Bitcoin product, cbBTC, and removing the largest and most influential competitor in WBTC," a BiT Global spokesperson said in an email to Cointelegraph on Nov. 20.

The lawsuit, filed in the Northern District of California by the law firm Kneupper & Covey, accuses Coinbase of attempting to monopolize the wrapped Bitcoin market, engaging in predatory practices, and making false statements about wBTC’s compliance with listing standards.

Kevin Kneupper, an attorney representing BiT Global, emphasized the broader implications of the case: “We believe this decision sets a terrible precedent for everyone in the cryptocurrency space. If an exchange of Coinbase’s size can delist a cryptocurrency just as it plans to launch its own competing product, who’s safe? And who’s next?”

Coinbase Defends Actions

Coinbase announced the delisting on Nov. 19, citing undisclosed failures of wBTC to meet its listing standards. The exchange defended its decision, stating, “We regularly monitor the assets on our exchange to ensure they meet our listing standards. Based on our most recent review, Coinbase will suspend trading for wBTC on Dec. 19, 2024, on or around 12 pm ET.”

BiT Global, which has been a joint custodian of wBTC’s Bitcoin reserves since August alongside crypto firm BitGo, argues that Coinbase’s actions eroded consumer confidence and inflicted significant financial losses.