Coinbase is facing a $1 billion lawsuit from BiT Global Digital Limited over its decision to delist Wrapped Bitcoin (wBTC).
The Hong Kong-based exchange claims that Coinbase’s move was a deliberate attempt to monopolize the market and promote its own rival product, cbBTC. Filed on December 13 in the Northern District of California, the lawsuit accuses Coinbase of anti-competitive practices under the Sherman Act.
The complaint further accuses Coinbase of making false statements suggesting that wBTC failed to meet its listing standards. The delisting was announced on November 19, with Coinbase citing unspecified failures of wBTC to meet its token listing standards.
BiT Global alleges that Coinbase’s delisting of wBTC caused significant financial losses and damaged consumer confidence in the token.
“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?” BiT Global has been a joint custodian of wBTC’s Bitcoin reserves, alongside crypto firm BitGo, since August 2024.
“We believe this decision sets a terrible precedent for everyone in the cryptocurrency space,” said attorney Kevin Kneupper.
BiT Global’s legal team, led by law firm Kneupper & Covey, argues that Coinbase’s reasoning was misleading.
“We want to build an earnings profile that isn’t entirely dependent on market volatility,” he explained.
Last month, Tom Duff Gordon, Coinbase’s Vice President of International Policy, said the exchange aims to shift toward more predictable revenue streams, such as stablecoin fees, staking rewards, and subscription services under Trump.
Gordon reiterated the company’s commitment to the American market, stating, “The U.S. will continue to be our most important market. The cryptocurrency sector has become a significant player in political financing during the 2024 election cycle, with industry-funded PACs raising a total of $190 million. The Winklevoss twins, Cameron and Tyler, stand out as the largest individual donors, having contributed a combined $10.1 million.
As Trump prepares to take office, the expectation of reduced regulatory friction offers hope for U.S.-based exchanges like Coinbase.
As reported, Coinbase has also announced a $25 million donation to the super political action committee Fairshake, aiming to bolster support for pro-crypto candidates in the upcoming 2026 midterm elections.
Other significant contributors from the cryptocurrency industry include Coinbase CEO Brian Armstrong, who has given over $1.3 million to both Republican and Democratic PACs.