Coinbase and Hong Kong-based BiT Global have resolved their legal battle over the delisting of wrapped bitcoin (wBTC), according to a court filing dated June 7, 2025. BiT Global has agreed to dismiss its lawsuit with prejudice.
Notably, before the dismissal, the court had denied BiT Global’s request for a temporary restraining order, citing that it had not properly notified Coinbase.
BiT Global Withdraws $1B Lawsuit
Filed in December 2024, in the Northern District of California, the lawsuit alleged that Coinbase delisted wBTC without justification, causing harm to the token’s liquidity and reputation. BiT Global claimed that Coinbase’s actions were motivated by a desire to favor its token, cbBTC, which the exchange had launched months earlier.
In response, Coinbase defended its decision by citing internal risk assessments tied to WBTC’s new custodial structure. The exchange cited WBTC ties to BitGo and crypto entrepreneur Justin Sun. It maintained that these ties posed risks to decentralization and reputation.
Coinbase also emphasized that wBTC represented less than 1% of the exchange trading volume. It claims its delisting was a carefully considered measure to safeguard platform integrity.
Interestingly, the recent court submission ends the dispute, with no disclosed settlements or side agreements beyond the cost‑splitting arrangement. While the termination prevents BiT Global from refiling, both firms remain silent on whether any non-monetary concessions were made.
Coinbase Faces Other Legal Battles
Coinbase is facing new scrutiny following a significant data breach that it had previously concealed for months. The exchange discovered in January that employees were photographing sensitive customer information and selling it to hackers for bribes. Despite being aware of the breach early in the year, Coinbase delayed public acknowledgment until May, prompted only by an extortion demand tied to the incident.
Coinbase’s leadership is also in a separate legal case alleging investor betrayal. The lawsuit alleges that its executives misled investors about the risk that customer assets could become unsecured in the event of bankruptcy. It further asserts that in the 2021 bear market, executives sold personal stock holdings and downplayed financial risks to investors.
Meanwhile, Justin Sun, the founder of Tron, has publicly criticized Coinbase’s token listing policies, accusing the exchange of hypocrisy. Sun alleges that while Coinbase CEO Brian Armstrong insists listings are free, the platform demanded 500 million TRX and a $250 million Bitcoin deposit into Coinbase Custody to list TRX.
