Coinbase and BiT Global have quietly ended their legal fight over the delisting of wrapped Bitcoin (wBTC) on Coinbase. In a joint court filing, both companies agreed to settle the matter. BiT Global will dismiss its lawsuit with prejudice, meaning the case can’t be reopened in the future. Each side will pay its legal costs.
The conflict began last year when Coinbase removed wBTC from its platform. Coinbase said the token posed an “unacceptable risk” because of its connection to crypto billionaire Justin Sun. Sun became involved with wBTC through a partnership in August, and Coinbase grew concerned that the token could fall under his control.
BiT Global disagreed vigorously. The firm stated in its lawsuit that the delisting was unreasonable and harmed wBTC’s liquidity and reputation. They further noted that Coinbase had just introduced its own competing token, cbBTC, merely two months prior to dropping wBTC, which it alleged was a self-serving action.
Even BiT Global at some time asked for a temporary restraining order from the court to force Coinbase to restore the listing of wBTC. But Judge Araceli Martinez-Olguin denied that request, siding with Coinbase’s decision to remove the token from its platform.
Even as the joint court filing affirmed the suit is settled, it did not give any other terms of the settlement except for the cost provision. With this, the two companies are now on their way, but the lawsuit reveals how issues of competition and trust continue to be deep-rooted in the crypto market.
Also Read: Asset Freezing is a Major Issue: Coinbase CEO
