Coinbase has found itself in a legal battle with BiT Global, affiliated with Justin Sun. BiT Global sued Coinbase on Dec. 13 after the latter planned to delist wrapped Bitcoin (wBTC) from its U.S. exchange. BiT Global claimed the delisting was illegal, would harm the token’s economics, and accused Coinbase of antitrust behavior by launching cbBTC.
However, Coinbase, in a court filing on Dec. 17, argued that California’s Unfair Competition Law didn’t apply and that cbBTC wasn’t a major player in tokenized BTC assets. The exchange said material changes in wBTC’s stewardship, especially Justin Sun’s majority control of Bitcoin reserves, along with SEC charges and an FBI inquiry into Sun (though no indictment or arrest warrant yet), led to its reconsideration. Coinbase described its decision as a “common sense” move to protect customers and said delisting wBTC wouldn’t affect its overall on-chain activity.
The U.S. crypto giant asked the California Court to deny BiT Global’s request for a temporary restraining order and $1 billion in relief, citing BiT Global’s ties to an allegedly problematic individual and a fabricated emergency over wBTC. NFL star Odell Beckham Jr. is among those involved in the broader Bitcoin and crypto activities related to this case’s context.
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