Coinbase and BiT Global have quietly and simultaneously resolved their legal battle over the takedown of wrapped Bitcoin (wBTC), a tokenized version of Bitcoin on the Ethereum blockchain, on the Coinbase exchange.
Both companies consented to settle the dispute in a joint court filing. BiT Global will drop its lawsuit with prejudice, meaning there's no option to reopen the same filing in the future.
The wBTC battle started between the two companies last year when Coinbase delisted the token from its platform last year. Coinbase flagged the token because its believed the crypto posed risks due to its ties to crypto mogul Justin Sun.
Sun’s involvement with wBTC began through a collaboration in August the same year. This raised Coinbase’s concerns about his potential influence over the token.
However, BiT Global, a key partner in the custodial and operational framework of wBTC, disagreed vigorously with Coinbase on the matter. The company immediately filed a lawsuit and stated in the lawsuit that the delisting was unreasonable and harmed wBTC’s liquidity and reputation.
They pointed out that Coinbase launched its own rival token, cbBTC, just two months before delisting wBTC, claiming the move was driven by self-interest. At some point during the legal battle, BiT Global demanded a temporary restraining order from the court to compel Coinbase to reinstate wBTC's listing.
However, Judge Araceli Martinez-Olguin rejected the motion, and further supported Coinbase’s action to delist the token. Even as the court filing confirmed the lawsuit is settled, it's important to note that it only mentioned that each side will pay its own legal costs.
The case shows ongoing issues of competition and trust in the crypto world. Both companies will now move forward separately.
