Coinbase Wins Dismissal of wBTC Delisting Lawsuit
On Friday, June 6, 2025, Law.com reported that BiT Global Digital Ltd. dismissed its antitrust and unfair competition lawsuit against Coinbase with prejudice in a San Francisco federal court.
The dismissal followed a ruling by U.S. District Judge Araceli Martínez-Olguín of the Northern District of California, who denied BiT Global’s request for a temporary restraining order to prevent Coinbase from delisting Wrapped Bitcoin (wBTC) from its cryptocurrency exchange. The judge’s decision came after oral arguments on a motion to dismiss the case, during which she cautioned BiT Global’s legal team about the weaknesses in their claims.
The lawsuit stemmed from Coinbase’s decision to delist wBTC, a cryptocurrency pegged to Bitcoin’s value that allows users to engage with decentralized finance applications on blockchain networks like Ethereum. BiT Global, which operates wBTC alongside its affiliates, sought to block the delisting, arguing it would cause significant harm. The company claimed wBTC, which represents over $13 billion in Bitcoin value, has been tradable on Coinbase since at least October 2020.
However, Coinbase justified the delisting, citing concerns about potential risks to its users. Specifically, Coinbase’s legal team, led by Sonal N. Mehta of Wilmer Cutler Pickering Hale and Dorr, argued that the delisting was prompted by fears that control of wBTC could fall into the hands of Justin Sun, the founder of TRON. Sun faces fraud and securities violations charges from the U.S. Securities and Exchange Commission, filed in March 2023.
During the virtual hearing, Judge Martínez-Olguín noted that BiT Global failed to demonstrate “imminent irreparable harm” in its arguments against the delisting. She described the evidence presented by BiT Global’s attorneys, Kevin Kneupper and A. Cyclone Covey of Kneupper & Covey in Huntington Beach, California, as “speculative.” The judge also pointed out that BiT Global’s delay of several weeks between Coinbase’s delisting announcement and the filing of its complaint weakened its case for urgent relief.
Paul Grewal, Coinbase’s chief legal officer, addressed the dismissal on X, emphasizing the company’s commitment to user safety and compliance. He stated that the ruling affirmed Coinbase’s right to manage security and risk for its customers, underscoring that the exchange maintains high listing standards and will not list assets that pose risks to users.
Source: Law.com
