Coinbase and BiT Global have officially ended their high-profile legal battle over the delisting of wrapped Bitcoin (wBTC) from the Coinbase platform. The dispute, which had threatened to reshape competitive dynamics in the digital asset space, closes with both sides agreeing to dismiss all claims without any public settlement, compensation, or relisting of the token.

Image Source: Paulgrewal

Background

The conflict began last year when Coinbase abruptly delisted wBTC, a popular token representing Bitcoin on the Ethereum blockchain, citing “unacceptable risk” due to the involvement of crypto billionaire Justin Sun. Sun, who became affiliated with wBTC through a partnership in August 2024, raised red flags for Coinbase, which feared the token could fall under his control a scenario the exchange deemed too risky for its users.

BiT Global, a key custodian and backer of wBTC, saw things differently. The company alleged in its lawsuit that Coinbase’s move was not only unjustified but also strategically timed to benefit the exchange’s own newly launched competing asset, cbBTC. Notably, Coinbase introduced cbBTC just two months before the wBTC delisting, prompting accusations of anti-competitive behavior and market manipulation.

The Legal Showdown

BiT Global’s lawsuit, filed in the Northern District of California, sought over $1 billion in damages and an injunction to restore wBTC’s listing. The firm argued that the delisting harmed wBTC’s liquidity and reputation, while giving Coinbase’s cbBTC a significant market advantage.

The legal battle saw BiT Global request a temporary restraining order to force Coinbase to relist wBTC a request denied by the court, which sided with Coinbase’s right to manage platform risk. Throughout the proceedings, both sides maintained their positions, coinbase insisted its actions were rooted in customer safety, while BiT Global decried what it saw as unfair competition.

Resolution

On June 7, 2025, the companies filed a joint agreement to dismiss the lawsuit with prejudice, meaning BiT Global cannot revive the case in the future. Each party will pay its own legal costs, and no other settlement terms were disclosed. There will be no relisting of wBTC on Coinbase, and neither company admitted wrongdoing.

“We will not be bullied into continuing to list an asset that puts our customers at risk,” said Coinbase’s Chief Legal Officer, Paul Grewal, underscoring the exchange’s stance on platform security.

Industry Impact:

The closure of this lawsuit highlights several key trends in the crypto industry. As exchanges launch their own wrapped tokens, questions about fair competition and market power are increasingly coming to the fore. The case spotlighted the importance of custodial trust and transparency, especially when influential figures like Justin Sun are involved. Several DeFi platforms, including MakerDAO and Aave, had already restricted wBTC due to similar concerns. The outcome signals that exchanges have significant discretion over their listings, but also that aggrieved parties may not find easy recourse in court especially when security and risk management are cited.

Looking Forward

With the legal chapter closed, both Coinbase and BiT Global are free to pursue their respective strategies. The wBTC delisting saga serves as a cautionary tale for token issuers and exchanges alike