Wrapped Bitcoin (wBTC) custodian BiT Global is suing Coinbase after the top US-based cryptocurrency exchange delisted wBTC in November, according to new court documents. are.
In a new complaint, BiT Global alleges that Coinbase ultimately delisted wBTC (a tokenized representation of Bitcoin (BTC) on the Ethereum (ETH) blockchain) before replacing it with its own version of the asset. They are accusing them of using it as a “cash grab.”
“In the case of Wrapped Bitcoin, Coinbase saw it as just a cash grab. The company believed that its competitor, wBTC, was unlocking the value inherent in Bitcoin and that users could boldly share that value. We thought we had an innovative product that could be leveraged in new ways…
Coinbase has decided to take what it wants. Once wBTC's value was proven, Coinbase changed its rules and delisted wBTC from its platform, making it no longer tradeable on the Coinbase platform. And they changed it shortly after launching their own copy clone called cbBTC. ”
BiT Global said tech giants such as Microsoft, Google and Facebook took similar actions against competitors several years ago. BiT Global further stated that Coinbase's actions constitute an attempt to monopolize the market and deliberately undermine the value of wBTC, in violation of U.S. commerce law.
“Coinbase engaged in predatory and anti-competitive conduct to achieve its objectives. [its] Exclusive.
It is using its dominance in one market, the centralized cryptocurrency exchange market in the United States, to remove wBTC from that market. The company has issued false statements about the reasons for the delisting (the implication being that the delisting was based on a thorough review of wBTC using neutral criteria, and that Coinbase was the cause of the delisting) It has the implication that they possess harmful information about wBTC).
These activities are creating 'FUD' (Fear, Uncertainty and Doubt) surrounding wBTC and were part of a deliberate strategy to do so. ”
On November 20th, Coinbase announced that it will suspend trading of WBTC on December 19th following its latest review.
Coinbase first announced Coinbase Wrapped BTC (cbBTC), its own wrapped version of the crypto kingpin, earlier this year.
wBTC is trading at $101,122 at the time of writing, up 1.7% in the past 24 hours.
Generated image: Mid Journey
