BiT Global Drops Lawsuit Against Coinbase Over wBTC Delisting Amid cbBTC Launch

BiT Global, a firm tied to TRON founder Justin Sun, has officially ended its legal battle with Coinbase over the exchange’s decision to delist wrapped Bitcoin (wBTC). The lawsuit, originally filed in late 2024, accused Coinbase of anti-competitive behavior following the launch of its own wrapped Bitcoin token, cbBTC.

According to a court filing on Friday, BiT Global agreed to dismiss the lawsuit with prejudice, preventing the case from being refiled in the future. Both parties will cover their own legal costs.

Coinbase Chief Legal Officer Paul Grewal called the dismissal “an important win” in a post on X.

“This affirms our clear right to manage security and risk for Coinbase users,” he said. “We will not be bullied into continuing to list an asset that puts our customers at risk.”

Wrapped Bitcoin tokens like wBTC and cbBTC allow users to use Bitcoin on Ethereum and other smart contract platforms. These tokens are backed 1:1 by Bitcoin held in custody and rely on centralized issuers to manage minting and redemption. While wBTC has long been supported by BitGo, a 2023 strategic partnership expanded that control to include BiT Global—a move that drew scrutiny from some in the crypto space due to Sun’s involvement.

Industry reaction was mixed. While MakerDAO and Aave—two major DeFi platforms—considered removing wBTC as a collateral asset in response to the partnership, they ultimately opted for tighter risk controls instead of a full delisting.

The original lawsuit filed by BiT Global’s attorneys argued that Coinbase's timing was suspect: delisting wBTC soon after launching cbBTC created an uneven playing field. The complaint stated Coinbase “changed the rules” once wBTC’s market presence was proven. However, a federal judge sided with Coinbase in December, affirming the company’s right to delist tokens at its discretion.

BitGo CEO Mike Belshe pushed back against the criticism tied to Sun’s association, emphasizing the firm’s reputation for strong security.

“I think in the end, people are going to realize this is a big nothingburger,” Belshe said in a previous interview.

As of now, wBTC remains a major player in the wrapped token market with a market cap of around $13.6 billion, according to CoinGecko. Coinbase’s cbBTC has also gained significant traction, reaching a market cap of $4.7 billion—both tokens currently trade near their historical highs.