Coinbase Responds To BiT Global’s Lawsuit Over Bitcoin Delisting

Coinbase has issued a response to a lawsuit from BiT Global, a company linked to Justin Sun. The disagreement began after Coinbase decided to remove wrapped Bitcoin (wBTC) from its platform on December 19. BiT Global argues that this decision damages its reputation and accuses Coinbase of trying to take over the tokenized Bitcoin market.

The lawsuit claims that Coinbase’s actions are harmful and could be seen as anti-competitive. BiT Global believes the removal of wBTC is unfair and says it shows Coinbase is using its power to harm competitors.

Coinbase has added Apple Pay so users can easily turn regular money into cryptocurrency. This shows that Apple is becoming more interested in digital finance and following new rules in the United States.

BiT Global Raises Concerns About Custodianship And Justin Sun

The disagreement over wBTC comes from changes in how it is managed. In August, BitGo announced it would let BiT Global and its Singapore branch help control wBTC. Coinbase was worried about these changes, as Justin Sun’s involvement increased their risk.

BiT Global recently began managing wBTC after teaming up with Justin Sun. After this partnership, the company chose to take legal action against Coinbase. It filed a lawsuit because Coinbase decided to remove wBTC from its platform.

Paul Grewal, Coinbase’s Chief Legal Officer, addressed the issue, explaining that Coinbase had reviewed its decision carefully. He said the choice to remove wBTC was influenced by allegations of past financial problems connected to Sun.

BiT Global claims that Coinbase is favoring its product, cbBTC, over wBTC. The lawsuit says this is not fair, especially since cbBTC has a market value of $2 billion, while wBTC is worth $13.4 billion.

The company also argues that Coinbase’s actions break federal laws meant to stop monopolies. However, Coinbase defended itself by stating that its platform accounts for less than 1% of wBTC transactions, so its decision has a limited effect on BiT Global.

Coinbase Expands Offerings While Facing Lawsuit

While handling the lawsuit, Coinbase added a new feature that lets Apple Pay users buy cryptocurrencies easily. This is part of Coinbase’s plan to improve access to digital assets and shows that Apple is becoming more interested in the crypto market.

Apple, which was once unsure about cryptocurrency, is now more willing to work with platforms like Coinbase. According to Coinbase, this change matches the growing interest in digital money and crypto investments in the United States.

While dealing with this legal problem, Coinbase said it is also bringing new services to its users. The company is growing and adding new features to remain a leader in the cryptocurrency world. This shows how fast the crypto industry is evolving and getting better.