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Home web3.0 Coinbase officially releases from BIT Global's WBTC recommendation lawsuit

Coinbase officially releases from BIT Global's WBTC recommendation lawsuit

Jun 11, 2025 pm 04:39 PM
Blockchain ai Bitcoin btc exchange trading platform

After months of legal tug-of-war, Coinbase finally escaped from a lawsuit filed by Bit Global involving the removal of "Packed Bitcoin" (WBTC).

Coinbase officially releases from BIT Global's WBTC recommendation lawsuit

According to documents filed by the court on June 6, the case has been officially concluded through voluntary withdrawal of the lawsuit. Both parties shall bear their own legal costs, the case shall be permanently closed, and any legal documents shall be prohibited from submitting again on the matter in the future.

This result comes after Bit Global suffered a series of setbacks, after the company challenged Coinbase's decision to remove WBTC tokens from its platform. The lawsuit was filed in December last year, accusing Coinbase of favoring its own competitive token, CBBTC, and soon launched the token.

However, after the court repeatedly showed support for Coinbase's position, Bit Global chose to withdraw the lawsuit before the final ruling was issued.

Coinbase insists that WBTC no longer meets its listing standards due to changes in risk factors and governance issues. The company defended its behavior with the standard process of risk management of digital assets and stressed that there is currently no plan to relist the token.

The dispute stems from a partnership between Bitgo and Bit Global, which jointly manages the Bitcoin reserves that support WBTC. Under the agreement, some of the reserves were transferred to Hong Kong, thus breaking away from the scope of US regulation.

The adjustment of the custodial structure has sparked concerns within the industry due to Bit Global's connection with well-known entrepreneur Justin Sun, who is well known for his involvement in blockchain projects such as Tron. Coinbase regards this change in the hosting model as a key issue and clearly states that it is no longer compatible with company compliance and governance policies.

Bit Global believes that Coinbase's move is actually an excuse to suppress WBTC and support CBBTC, which is a product launched by Coinbase and Chainlink.

The case also highlights a broader conflict in the crypto industry regarding token custody mechanisms and trading platform access rules. As centralized exchanges such as Coinbase continue to increase their voice, disputes over the control of the underlying infrastructure of tokens are becoming increasingly intensified.

At the same time, against the background of the continued uncertainty of the US regulatory environment, this has also affected Coinbase's strategic judgment on token support.

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