As a seasoned analyst with over two decades of experience in the financial and tech industries, I find myself deeply concerned about this escalating legal battle between BiT Global and Coinbase. My career has been marked by a keen eye for market trends, regulatory compliance, and competition dynamics, and this case presents a complex interplay of all three.
BiT Global, supported by Justin Sun, alleges that Coinbase unjustly removed Wrapped Bitcoin (WBTC) from its platform in order to boost a rival Bitcoin product.
As a researcher, I’m sharing some recent developments in the cryptocurrency sector. In this case, BiT Global has taken legal action against Coinbase, claiming that they allegedly breached the law by replacing their Wrapped Bitcoin (WBTC) product with a replica called cbBTC token without proper authorization or consent.
Wrapped Bitcoin (WBBC) was the first asset representing Bitcoin (BTC) on crypto platforms, enabling users to trade BTC on networks like Ethereum. Initially, BitGo managed the custody of WBCC since its debut in January 2019. Later in August 2020, BitGo revealed a partnership to distribute operational responsibilities among three firms, including Sun’s BiT Global.
The recently agreed-upon arrangement, which has faced significant scrutiny within the community, designated Hong Kong-based BiT Global as the main custodian for WBTC. Various protocols such as Aave and Sky, having deliberated on whether to exclude the token as a collateral option, opted against immediate action.
According to crypto.news, Coinbase announced that it would stop supporting WBWrapped Bitcoin as of December 19, 2024, because it didn’t meet their listing requirements. This decision followed Coinbase’s introduction of its own cbBTC token on their Base and Ethereum layers in September. The cbBTC token was first hinted at during the ongoing WBTC debate.
Consultants at Kneupper & Covey, who represent BiT Global, asserted that Coinbase’s decision to remove WBTC from their platform potentially breached anti-monopoly regulations and federal guidelines.
It seems to us that this action could establish a problematic pattern across the entire crypto market. If a prominent exchange like Coinbase can remove a cryptocurrency when they’re about to release their own competitive product, who might be vulnerable next? This raises concerns about the safety and fairness for all parties involved in the crypto sphere.
Kevin Kneupper of Kneupper & Covey
As per the court case, Coinbase argued that their listing standards were insufficient for their decision, but this point was contested. Court documents from the Northern District of California pointed out Coinbase’s listing of “worthless” meme tokens such as Pepe (PEPE). BiT Global is demanding compensation exceeding $1 billion and an injunction against Coinbase.
Currently, WBTC remains the leading tokenized form of Bitcoin, with a market cap of $13.7 billion, significantly larger than its $8 billion value at the onset of the situation back in mid-2024 Q2.
Read More
- PYTH PREDICTION. PYTH cryptocurrency
- As Lindsay Lohan And Lacey Chabert Headline Christmas Movies, These Comments Have Me Convinced A Mean Girls Holiday Movie Reunion Needs To Be Next
- Niels Arestrup Dies at 75, Iconic Actor Was a Force of Cinema
- Taylor Swift Calls Eras Tour “Most Challenging Thing I’ve Ever Done” at Final Show
- 15 Charged for converting Drug Cartels’ Cash into Cryptocurrency in U.S.
- EXCLUSIVE: Alia Bhatt in talks with Dinesh Vijan for a supernatural horror thriller; Tentatively titled Chamunda
- Suriname presidential candidate eyes on Bitcoin as currency
- ‘I Pitched Stargate’s Take On Black Panther’: Christopher Judge Opens Up About His Teal’c Spinoff And Why It Hasn’t Happened
- Bitcoin’s surge signals potential market ‘overshoot,’ BofA strategist warns
- Imtiaz Ali cites Kareena Kapoor Khan’s example to explain how women used to be ‘treated with respect’ in film industry; ‘There were three lightmen…’
2024-12-13 23:38