BiT Global has filed a lawsuit against it Coinbasethe largest cryptocurrency trading platform in the United States, according to a Dec. 13 Filing a case in court.
this Justin Sun– Custodian of Related Cryptocurrencies Claims US Exchange Unfairly Removed Packaged Bitcoin (WBTC) from its platform in favor of its in-house product, Coinbase Wrapped Bitcoin (cbBTC).
Violation of antitrust laws
According to the court filing, Coinbase is using its dominance in the cryptocurrency market to stifle competition. BiT Global accused the exchange of violating antitrust laws by replacing WBTC with cbBTC to gain control over the complex bitcoin market.
The complaint alleges that Coinbase's actions are not only anti-competitive, but also strategically aimed at increasing its transaction revenue, as transaction fees on its platform are expected to increase as cbBTC adoption increases.
The following is the case:
“On information and belief, Coinbase is using this language – that it does not charge packaging/unpacking fees 'today' – because it intends to do so after unfairly eliminating competition.”
BiT Global denied Coinbase's claim that WBTC was removed due to “listing standards” and cited as evidence.
According to the filing, these actions show that the delisting was not about quality, but rather an attempt to usurp WBTC's position in the market. added:
“The decision to allow users to trade these memcoins makes it clear that Coinbase did not delist WBTC because of any standard, but because Coinbase was interested in WBTC's market share and wanted it for itself.”
Through this lawsuit, BiT Global seeks to restore competition and prevent further concentration of power. The company plans to stop delisting WBTC and protect decentralized innovation in the crypto space.
Complicated Bitcoin Market
Coinbase's decision to Remove wBTC from the list It comes after a turbulent year for the property. BiT Global became the primary custodian of WBTC this year following BitGo's move to distribute custody control among several entities, including the Hong Kong-based firm.
This change raised concerns in the DeFi community due to Justin Sun's association with the crypto custodian. MakerDAO and Aave to reconsider WBTC As a collateral asset
While these DeFi protocols ultimately sustained WBTC, the developments raised questions about its long-term sustainability. In response to these challenges, several companies were launched, including Coinbase Their own packaged bitcoin products.
However, cbBTC Coinbase has Accelerated quickly Becoming the second largest Bitcoin product after WBTC. The token was deployed on Ethereum and its Layer 2 network base in September and currently has a market cap of around $2 billion.
WBTC, on the other hand, despite being among the top 20 cryptocurrencies with a market cap of $13.7 billion, has seen its token supply drop by more than 20,000 bitcoins due to ongoing challenges.
