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A legal dispute initiated by BiT Global following the removal of its Wrapped Bitcoin 
$106,035 (wBTC) token from Coinbase has been resolved through an agreement between the two companies. Both parties have agreed to withdraw their claims and bear their own legal expenses. As a result of this settlement, the lawsuit that BiT Global filed last year in the US Northern District Court of California will not be reopened in the future.
Root of the Legal Conflict
The legal proceedings began when Coinbase removed the wBTC token, citing an “unacceptable risk.” The primary concern for Coinbase revolved around Justin Sun, a Chinese-born cryptocurrency entrepreneur, and his position as an investor in wBTC. After Sun signed a partnership agreement related to the token in August, Coinbase requested BiT Global to clarify his role in the project.
Coinbase decided to delist wBTC after receiving no response from BiT Global. The company’s statements indicated that Sun’s influence over the product raised concerns about potential malicious use of the token.
BiT Global’s Claims and Competitive Tensions
In its court submissions, BiT Global argued that the delisting of wBTC by Coinbase was unjust, adversely affecting the token’s liquidity and reputation. Additionally, the company claimed that the decision was intended to give an advantage to Coinbase’s competing product, cbBTC.
According to court documents, Coinbase launched its rival token, cbBTC, approximately two months before removing wBTC, escalating the competitive dynamics between the two companies. BiT Global alleged that the decision unfairly benefitted investors favoring Coinbase’s cbBTC.
Statements from Both Parties and Scope of the Agreement
Coinbase officials explained that they conducted a risk assessment before the token’s removal as a measure to protect user safety. BiT Global representatives, on their legal filing, argued that the decision was unjust and led to financial losses for the company.
No additional details of the agreement were disclosed to the public, except for the fact that both companies will cover their own legal costs, and the case cannot be reopened. There was no information on whether wBTC will be relisted on the platforms.
These developments highlight that similar disputes may become more frequent in the cryptocurrency market due to regulatory uncertainties. The listing and delisting decisions by major platforms significantly impact both investors and the future of related tokens. Close monitoring of these issues holds importance for market transparency and risk management.
