“Most of your pleadings have lots of speculation about what the harm could be,” the judge said during a Zoom hearing.
The judge also questioned the delay in BiT Global’s filing, noting that it waited three weeks after Coinbase’s announcement to seek the TRO.
Arguments From Both Sides
BiT Global’s attorney, Cyclone Covey of Kneupper & Covey PC, argued that the delisting had already caused a 5% drop in wBTC circulation and that further harm would occur when the suspension was enacted.
He added that less sophisticated users, relying on Coinbase as a major U.S.-based exchange, could suffer financial losses.
However, Coinbase’s attorney, Sonal Mehta of WilmerHale, countered that the alleged harm was overstated, pointing out that Coinbase accounts for less than 1% of wBTC trading volume.
“The lost sales that BiT Global claims it will suffer are speculative,” Mehta said, emphasizing that BiT Global’s delay in seeking relief undermined its claims of urgency.
Broader Allegations Against Coinbase
BiT Global’s lawsuit alleges that Coinbase violated the Sherman Act by attempting to monopolize the wrapped bitcoin market, engaged in trade libel, and interfered with prospective economic advantage. The complaint also includes claims under California’s Unfair Competition Law and the Lanham Act.
