In a latest development, Bit Global has filed a lawsuit against crypto trading platform Coinbase Global Inc claiming that Coinbase has unlawfully delisted its WBTC token so it could promote the rival cbBTC.
In a Dec. 13 complaint, BiT Global alleges that Coinbase’s decision to delist wBTC was to promote its own competing product, cbBTC, that has caused massive financial losses and deteriorated consumer confidence in wBTC.
The lawsuit covers allegations of attempted monopolization of the wrapped Bitcoin market under the Sherman Act, claims of predatory practices to undermine wBTC’s market position and accusations of false statements implying wBTC failed to meet listing standards.
Lawsuit Claims Coinbase Delisted WBTC to Gain Monopoly
The lawsuit further alleged that Coinbase’s listings of meme coins and tokens such as Dogwifhat (WIF), Pepe (PEPE) and Mog Coin (MOG) that have “no inherent value” proves that the exchange delisted WBTC in a bid to have a monopoly over the industry. It also restated that delisting WBTC in place of these memecoins proves that the exchange did not follow any defined listing standards.
“Like all the centralized tech giants before it, Coinbase gives lip service to the innovation of a decentralized world,” the firm’s lawsuit noted. “But in the case of wrapped Bitcoin, Coinbase viewed it as just another cash grab.” Notably, Coinbase launched its own wrapped Bitcoin token in September, called Coinbase Wrapped BTC, or cbBTC. Last month, it delisted WBTC citing that it did not meet the exchange’s listing standards.
Coinbase Capturing Market Share
However, BiT Global alleged Friday that this was an unfair business practice. “Having decided to copycat WBTC with its own product, Coinbase resorted to unfair and deceptive tactics that long been used by tech giants to crush their competition,” BiT Global’s lawsuit noted.
The crypto custodian stated in the lawsuit that WBTC’s circulation fell by 5% within two weeks of its delisting. They argued this was evidence that Coinbase aimed to capture WBTC’s market share for itself.
The BitGlobal complaint noted that Coinbase’s decision to list Mog just two weeks after delisting wBTC shows that the decision had “nothing to do with standards and everything to do with unfairly and fraudulently pushing wBTC out of the market.”
Lawsuit Seeks $1 Billion!
The suit was filed by law firm Kneupper & Covey in the Northern District of California.
“We believe this decision sets a terrible precedent for everyone in the cryptocurrency space,” stated attorney Kevin Kneupper. “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?”
Notably, the lawsuit seeks damages exceeding $1 billion and includes demands for injunctive relief to prevent further harm.
