Coinbase and BiT Global End wBTC Delisting Dispute

Coinbase and BiT Global have officially closed the chapter on their legal disagreement regarding the removal of wrapped Bitcoin (wBTC) from Coinbase’s platform. According to a joint court submission, BiT Global has agreed to dismiss its lawsuit with prejudice—meaning it cannot be refiled—and both parties will bear their own legal costs.

The lawsuit, which began in December 2024 in the U.S. District Court for Northern California, challenged Coinbase’s rationale for delisting wBTC. The firm alleged that Coinbase’s move was unjustified, damaged wBTC’s liquidity and reputation, and was motivated by the launch of Coinbase’s own competing token, cbBTC, introduced just two months prior.

Coinbase had publicly stated that wBTC posed an “unacceptable risk” due to its association with crypto entrepreneur Justin Sun, who became linked to the token in August 2024. Though the legal complaint did not extend to ongoing assertions, Coinbase’s legal team maintained the right to delist tokens that no longer adhere to its security and risk standards.

This dismissal sets an important precedent in the evolving area of crypto exchange governance, underlining that platforms retain discretion over token listings based on their own criteria. For wBTC, the delisting and resulting legal turmoil raised questions about its competitiveness, though liquidity impact and long-term effects remain to be closely observed by market participants.