- BiT Global has formally dismissed its lawsuit against Coinbase over the delisting of wrapped BTC (wBTC)
- Each side has agreed to bear its own legal fees as part of the resolution
- The withdrawal follows Coinbase’s delisting of wBTC amid concerns tied to Justin Sun and the launch of its competing token, cbBTC
BiT Global has agreed to dismiss its case against Coinbase over the delisting of wrapped Bitcoin (wBTC), ending the six-month legal battle. In a joint court filing on June 7, the two companies agreed to cover their own costs in order to end the case, which revolved around Coinbase delisting wBTC, citing “unacceptable risk” tied to crypto figure Justin Sun. Coinbase subsequently issued its own competitive version, cbBTC, weeks before dropping wBTC, which drew more ire from BiT Global, but a judge found Coinbase had no case to answer.
Coinbase Accused of Anti-Competitive Behaviour
The lawsuit, filed in the Northern District of California last year, accused Coinbase of anti‑competitive behaviour, arguing that the delisting unjustly harmed wBTC’s liquidity and reputation, particularly since Coinbase launched cbBTC just two months prior. Coinbase maintained its move was driven by risk concerns, pointing to Sun’s involvement; according to Coinbase’s legal team, wBTC might “fall into the hands of Justin Sun.”
Efforts to block the delisting early on flopped when Judge Araceli Martínez‑Olguín denied a temporary restraining order and signalled through oral arguments that the case lacked merit, leaving BiT Global with nowhere to go. After the dismissal, Coinbase’s Chief Legal Officer Paul Grewal stated, “We will not be bullied into continuing to list an asset that puts our customers at risk.”
Why the Justin Sun Hate?
Coinbase views Justin Sun as a risk primarily due to concerns over trust, control, and regulatory exposure. The company argued that the wBTC, which BiT Global issued in partnership with Sun-linked entities, could ultimately fall under his influence, posing a potential threat to the integrity of the asset. Given that wBTC relies on third-party custodianship and trust in its reserve backing, Coinbase viewed Sun’s involvement as compromising that trust model.
With Sun already facing allegations from U.S. regulators over market manipulation and securities violations, Coinbase made a risk-based decision to delist the token, emphasizing its responsibility to protect customers from exposure to assets linked to individuals with a track record of regulatory scrutiny.
