A California federal judge on Wednesday denied BiT Global’s bid to block Coinbase from delisting its wrapped bitcoin product, wBTC, in a case where the cryptocurrency platform faces allegations of antitrust violations and $1 billion in claimed damages.
U.S. District Judge Araceli Martinez-Olguin ruled that BiT Global failed to provide sufficient evidence of imminent irreparable harm, calling much of the alleged harm “speculative.”
The Dispute Over Wrapped Bitcoin
The lawsuit, filed by Hong Kong-based BiT Global Digital Ltd., accuses Coinbase of delisting wBTC to promote its own competing product, Coinbase Wrapped BTC. Wrapped bitcoin allows bitcoin to be traded on decentralized exchanges, and wBTC had been available on Coinbase since October 2020.
In November, Coinbase announced its decision to suspend trading of wBTC within 30 days, citing concerns over the potential influence of Justin Sun, a controversial figure in the cryptocurrency world linked to the Tron Foundation. Coinbase argued that the delisting was necessary to mitigate risks associated with Sun’s involvement.
Bid for Temporary Restraining Order Denied
BiT Global sought a temporary restraining order (TRO) to halt the delisting, claiming it would cause irreparable harm by reducing market share and damaging its reputation. However, Judge Martinez-Olguin rejected the request, finding that BiT Global failed to substantiate its claims.
