Coinbase has issued a formal response to a lawsuit filed by BiT Global, a company tied to Justin Sun. The dispute arose after Coinbase announced it would delist wrapped Bitcoin (wBTC) from its platform on December 19.
BiT Global alleges that the delisting is defamatory and aims to monopolize the tokenized Bitcoin market. The lawsuit highlights concerns over Coinbase’s decision, accusing the exchange of anti-competitive behavior.
Meanwhile, Coinbase introduced Apple Pay support for fiat-to-crypto conversions, reflecting US regulatory trends and Apple's growing interest in digital assets.
Coinbase Responds to wBTC Lawsuit
The conflict stems from changes in the custodianship of wBTC. In August, BitGo announced it would share two of the three operational keys for wBTC with BiT Global and its Singapore-based subsidiary. Coinbase raised concerns about these changes, citing increased protocol risk due to Sun’s involvement.
Bit Global, the custodian recently added to WBTC through its partnership with Justin Sun, has sued Coinbase over its delistingThey say Coinbase unfairly delisted WBTC to push its own rival product, cbBTC pic.twitter.com/8cpojx5mFX
— db (@tier10k) December 13, 2024
Paul Grewal, Coinbase’s Chief Legal Officer, addressed the lawsuit. He stated that the company’s response to BiT Global’s request for a temporary restraining order challenges the merits of the case. Grewal explained that the decision to delist wBTC followed internal reviews and was influenced by allegations of past financial misconduct involving Sun.
BiT Global Accuses Coinbase of Monopoly
BiT Global claims Coinbase’s actions promote its own product, cbBTC, over wBTC. It accuses Coinbase of “predatory practices,” noting that cbBTC’s market capitalization is $2 billion, significantly smaller than wBTC’s $13.4 billion.
The lawsuit also argues that delisting wBTC violates federal laws intended to prevent monopolistic practices. Coinbase, in its defense, stated that its platform accounts for less than 1% of wBTC transactions, minimizing any potential impact on BiT Global.
????BREAKING: #Coinbase responds to Justin Sun-connected BiT Global's lawsuit over delisting wBTC. pic.twitter.com/RZmhWiE5Cv
— SmartViewAI.Com (@smartviewai) December 18, 2024
Coinbase’s concerns are linked to Sun’s regulatory history, which includes investigations by the SEC and FBI. The case highlights ongoing tensions in the crypto industry regarding custodianship, competition, and regulatory scrutiny.
Coinbase, Apple Pay Expand Crypto
While Coinbase faces a lawsuit over the delisting of wBTC, it has expanded its offerings by integrating Apple Pay for fiat-to-crypto conversions.
Coinbase integrates ApplePay for #Bitcoin and crypto purchases pic.twitter.com/tN1ZbeW8sO
— Radar???? (@RadarHits) December 3, 2024
This move aims to enhance accessibility to digital assets. For Apple, it reflects a shift toward the growing crypto market, influenced by changing political and regulatory trends in the US, including the potential arrival of Paul Atkins at the SEC, as reported by Finance Magnates.
Apple, once cautious about embracing digital assets, has recently shown a more open stance. Historically, the company resisted crypto due to concerns about user value and its own ecosystem risks.
However, Apple has begun to collaborate with crypto platforms like Coinbase, signaling a more active exploration of the crypto space, aligned with the current digital landscape in the US.
This article was written by Tareq Sikder at www.financemagnates.com.
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