Bit Global, the custodian that was not too long ago added to WBTC via its partnership with Justin Sun, has sued Coinbase over the delisting choice.
They say Coinbase unfairly delisted WBTC with a purpose to spotlight its personal competing product, cbBTC.
On November 19, Coinbase introduced that it deliberate to delist wBTC from its platform beginning December 19, 2024. The choice was attributed to a periodic evaluate of itemizing requirements. The timing coincided with a restructuring of the wBTC ecosystem, with BitGo, the asset’s longtime custodian, transferring partial management to BiT Global Trust, a Hong Kong-based group with ties to Justin Sun and the Tron blockchain.
This partnership has raised suspicions throughout the crypto group, main main decentralized finance (DeFi) platforms like MakerDAO and Aave to think about using wBTC as collateral, however neither has taken motion. Launched in 2019, WBTC stays the most important tokenized model of Bitcoin with a market cap of over $13.4 billion, surpassing alternate options like renBTC and iBTC.
Under the brand new governance construction, BitGo oversees wBTC operations, whereas BiT Global Trust serves because the custodian for the Bitcoin backing the token. Control of wBTC’s collateral is now cut up between three entities: BitGo, BiT Global Trust, and a BiT Global subsidiary in Singapore, every of which owns one of the multi-signature keys. The lawsuit, filed on behalf of BiT Global by legislation agency Kneupper & Covey, accuses Coinbase of anti-competitive habits. The lawsuit alleges that Coinbase’s actions violate state and federal legal guidelines and will hurt BiT Global’s enterprise.
“We believe this decision sets a terrible precedent for everyone in the crypto space,” lawyer Kevin Kneupper stated in a press release.
Coinbase responded to the allegations, saying: “Coinbase is committed to maintaining the high integrity of our listing standards and we regularly evaluate assets listed on our platform. If an asset fails to meet these standards, it is delisted.”
*This just isn’t funding recommendation.
