Coinbase has made a legal response to BiT Global’s lawsuit, which sought relief to keep wBTC on its platform. wBTC is the first and largest tokenized Bitcoin product on Coinbase, the largest crypto exchange platform in the US.
Coinbase’s chief legal officer Paul Grewal confirmed this in an X post:
We’ve filed our response to BiT Global’s effort to stop our delisting of wBTC before any discovery or even formal response to their bogus claims. We explain why this lawsuit lacks merit and why their request for a TRO should be denied.
~Paul Grewal
The legal debacle occurred during transition maintenance for wBTC from BitGo to BiT Global and its Singaporean satellite. In August, BitGo stated that, in a bid to enhance the resilience of its protocol, it was sharing two of the three wBTC keys with those two firms.
Coinbase acted on the concerns of crypto players
BiT Global argued in its submission that Coinbase is simply promoting a rival tokenized Bitcoin product, cbBTC. They claimed Coinbase has resorted to defamatory remarks to instil fear and doubt about wBTC’s regulatory position and stability.
However, Coinbase has maintained that their reaction comes from the concerns of the users. Mr. Sun has had regulatory issues and has been accused of market manipulation. This has contributed to Coinbase taking relevant measures.
Under the arrangement between BitGo and BiT Global’s two entities, BitGo will be in charge of operations, as the two BiT Global firms hold collaterals for wBTC.
BiT Global accuses Coinbase of violating federal laws over wBTC delisting
Coinbase has stated that BiT Global wants to force it into business with an entity that is non-compliant with its standards due to Mr Sun’s material involvement. Yet, they need more audacity to mention Sun’s connection to the complaint and TRO request.
BiT Global holds that Coinbase has breached several federal and state laws in its attempt to delist wBTC. Among the breached laws are the Sherman Act and the Lanham Act, which prohibits unfair monopolies.
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