BiT Global and Coinbase- BiT Global Settles wBTC Lawsuit, DeFi Stability in Focus
BiT Global and Coinbase– BiT Global has officially ended its legal battle with Coinbase over the delisting of its wrapped bitcoin token (wBTC), concluding a months-long dispute marked by accusations of anti-competitive conduct and reputational damage.
According to a joint court filing submitted on Friday, BiT Global dismissed the lawsuit with prejudice, preventing it from being refiled. Both parties agreed to cover their own legal fees. Additional settlement details were not made public.
Accusations of Favoritism and Competitive Harm
The lawsuit, originally filed by Hong Kong-based BiT Global, alleged that Coinbase deliberately delisted wBTC in favor of its own competing token, cbBTC, launched just two months earlier. The complaint cited violations of the Sherman Antitrust Act, unfair business practices, and misrepresentations about wBTC’s compliance.
Coinbase defended the delisting decision by pointing to “unacceptable risk” linked to Justin Sun, the founder of TRON, who had reportedly become involved with wBTC through a partnership announced in August 2024. The exchange claimed the token could “fall into the hands of Justin Sun,” prompting it to request clarification from BiT Global.
Impact on DeFi and Market Response
BiT Global, a partner of BitGo in the custody and issuance of wBTC, argued that the delisting hurt liquidity and investor trust. While DeFi protocols like MakerDAO and Aave didn’t delist wBTC, they did impose stricter risk controls.
Paul Grewal, Coinbase’s chief legal officer, stated: “This important win affirms our clear right to manage security and risk for Coinbase users.”
As of June 2025, wBTC still holds a strong position in the DeFi space with a $13.6 billion market cap, compared to cbBTC’s $4.7 billion, according to CoinGecko.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
