Coinbase Wins Court Approval for wBTC Delisting Amid Bit Global Lawsuit  

• Coinbase delisted Wrapped Bitcoin (wBTC) due to the risk factor associated with Justin Sun’s intervention. 
• The court dismissed Bit Global’s lawsuit that accused Coinbase of acting in an anti-competitive manner. 
• In its defense, Coinbase says that cbBTC supports its mission of ensuring that its trading environment is safe. 

Coinbase has had its way of defending the move it made to delist Wrapped Bitcoin (wBTC) which has allegedly been linked to Justin Sun. The court also threw out a lawsuit filed by Bit Global, saying that the delisting was anti-competitive and was designed to support Coinbase’s own wrapped Bitcoin, known as cbBTC. 

Reasons Behind the Delisting 

As disclosed in November 2024, Coinbase decided to suspend wBTC due to a recent review and deemed the token too risky to keep in its listing, supposedly because of Justin Sun’s involvement. The exchange from San Francisco emphasized that it must protect the users’ assets and the possibility of secure trading of cryptocurrencies. As for the issue of high-risk assets, no law obliges Coinbase to support them, said Paul Grewal, Chief Legal Officer at the company. 

Bit Global’s Claims Rejected 

Bit Global argued that the delisting lacked a concrete justification and sought a court order to reinstate wBTC. The company alleged that Coinbase aimed to eliminate competition by promoting cbBTC, its alternative wrapped Bitcoin token. However, the court ruled in favor of Coinbase, stating that Bit Global’s claims did not meet the criteria for antitrust violations. 

Coinbase’s legal team highlighted that antitrust laws are designed to protect competition, not to force businesses into partnerships. The company argued that hosting wBTC would expose users to unnecessary risks, undermining its mission to safeguard the trading ecosystem. The court acknowledged that Bit Global failed to establish a valid product or geographic market, fundamental elements of an antitrust claim. 

cbBTC Gains Traction Despite Criticism 

While wBTC remains a significant player with a market cap of $13.57 billion, Coinbase’s cbBTC has gradually gained traction, holding a market cap of $2.24 billion. Critics, including Bit Global, argue that Coinbase’s move disrupts the principles of decentralization and limits user choice. Coinbase maintains that its actions are in the best interest of its users and align with its compliance standards.