BiT Global, a firm backed by TRON founder Justin Sun that last year became a “strategic partner” with BitGo in offering the wBTC wrapped Bitcoin token, agreed to dismiss its lawsuit against Coinbase for delisting wBTC shortly after Coinbase launched a competitor token, cbBTC.
According to a Friday filing, lawyers from BiT Global agreed to drop the lawsuit with prejudice, meaning it can’t be brought again. Both firms agreed to pay their respective legal fees resulting from the lawsuit.
“This important win affirms our clear right to manage security and risk for Coinbase users,” Paul Grewal, the firm’s top lawyer, said on X. “…we will not be bullied into continuing to list an asset that puts our customers at risk.”
Wrapped Bitcoin tokens allow users to leverage their Bitcoin holdings on different blockchain networks; both wBTC and cbBTC target the Ethereum ecosystem. However, the tokens require users to trust a centralized intermediary to custody the Bitcoin and issue the wrapped token. Sun’s involvement with wBTC led Ethereum DeFi protocols MakerDAO and Aave to consider dropping support for the token as a collateral asset, ultimately opting instead for stricter risk parameters rather than removal.
The lawsuit, filed by law firm Kneupper & Covey on behalf of BiT Global in December 2024, claimed that Coinbase delisting wBTC would be anti-competitive and violate “numerous state and federal laws,” The Block previously reported.
“Once the value in wBTC had been demonstrated, Coinbase changed the rules, delisting wBTC from its platform so that it could no longer be traded on the Coinbase platform—and it did so shortly after launching its own knock-off clone called cbBTC,” the lawsuit stated.
Previous legal efforts to block Coinbase from delisting the token failed after a federal judge ruled in December that Coinbase had the right to delist the token.
The move of wBTC out of the sole control of custody firm BitGo into the strategic partnership that includes Sun generated criticism from some in the cryptocurrency industry.
“I think BitGo has a very strong reputation because we have applied the strictest principles of security to everything that we do,” BitGo CEO Mike Belshe told The Block at the time, in response to the criticism. “I think in the end, people are going to realize this is a big nothingburger.”
The wBTC token currently has a market capitalization of around $13.6 billion, according to CoinGecko data, while Coinbase’s cbBTC has a market capitalization of around $4.7 billion. Both tokens are currently valued near their all-time high market caps.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
