EddieJayonCrypto
9 Jun 25
BiT Global, a crypto custody firm linked to Justin Sun, has voluntarily dropped its lawsuit against Coinbase over the delisting of Wrapped Bitcoin (WBTC). The legal dispute began after Coinbase removed WBTC, citing governance and risk concerns related to BiT Global's involvement as co-custodian amid...
BiT Global, a crypto custody firm associated with Justin Sun, has voluntarily dismissed its lawsuit against Coinbase concerning the delisting of Wrapped Bitcoin (WBTC). This conclusion resolves a contentious legal battle centered on control over crypto custody and market competition.
The dispute began after Coinbase removed WBTC from its exchange, citing governance and risk concerns tied to BiT Global’s new role as co-custodian in partnership with BitGo. BiT Global accused Coinbase of delisting WBTC to favor its own wrapped Bitcoin token, cbBTC, accusing the exchange of a “cash grab” to elevate cbBTC’s market share.
Legal challenges for BiT Global mounted after a judge denied a preliminary injunction in March and suggested dismissal of the case due to insufficient legal grounds. Facing these setbacks, BiT Global chose to drop the lawsuit before a ruling, with both parties agreeing to cover their own legal costs. No settlement details were disclosed.
Following the case dismissal, Coinbase stated it has no intention to relist WBTC. This episode sheds light on the intensifying tensions in the crypto world, as custody control and token listing become critical issues under an evolving and fragmented regulatory environment. While WBTC maintains its position as the leading wrapped Bitcoin by market capitalization, Coinbase’s cbBTC continues to gain adoption swiftly.