Tag: Coinbase

Asset custody firm BiT Global has sued the American crypto exchange Coinbase, alleging anti-competitive practices. The lawsuit, filed in the Northern District of California by law firm Kneupper & Covey, seeks over $1 billion in damages.

The wrapped Bitcoin (WBTC) custodian alleges that Coinbase’s decision to remove the token from its exchange was motivated by a desire to promote its rival product, cbBTC.

Wrapped Bitcoin products, such as WBTC and cbBTC, allow users to unlock value in Bitcoin for use on other networks, such as Ethereum and Base. The user wraps their asset by depositing it into the wallet of a trusted custodian and subsequently receives a token on another blockchain. The original crypto is then held in trust for the user.

Bit Global Sues Coinbase

The lawsuit further alleged that Coinbase’s decision violates numerous state and federal laws, including antitrust laws. BiT Global argued that the exchange’s actions are anti-competitive and designed to stifle innovation in the crypto industry.

Claiming that the case could have industry-wide implications, BiT Global’s attorney Kevin Kneupper said:

“If an exchange of Coinbase’s size can delist a cryptocurrency just as it plans to launch its own competing product, who’s safe? And who’s next?”

Meanwhile, Coinbase publicly promoted cbBTC as “super strategic” and predicted it would surpass wBTC in supply within six months of launch. Citing this, the lawsuit alleged that Coinbase is attempting to push wBTC out of the United States crypto market to make way for its competing product, cbBTC. Interestingly, it’s been only three months since the token’s inception.

The asset custody firm plans to pursue the lawsuit and seek damages over $1 billion. Commenting on this, Kneupper continued:

“We think a jury will see this for exactly what it is…We plan to make sure the law is followed, and that cryptocurrency users get to choose which product they prefer.”

Coinbase Plays Defensive

According to Coinbase, the decision was not motivated by a desire to promote its competing product, cbBTC, as alleged by its opponent. Instead, the exchange claims the delisting resulted from a standard review process. However, BiT Global fired back, citing the exchange’s recent onboarding of various memecoins lacking fundamental value.

The American exchange recently announced plans to delist Tether’s USDT stablecoin from its platform for European customers, citing compliance with the European Union’s Markets in Crypto-Assets Regulation (MiCA).

Coinbase co-founder and CEO Brian Armstrong is set to meet with newly re-elected President Donald Trump to discuss potential personnel appointments for his second administration.

The meeting between Trump and Brian Armstrong would mark the first time the two have met since Election Day. According to a report from the Wall Street Journal, the private meeting is also part of Trump’s ongoing plans to finalize his cabinet and government heads.

Armstrong did not contribute directly to Donald Trump’s 2024 campaign or any political action committees (PACs) supporting the Republican candidate. However, before the U.S. election, Armstrong expressed that Coinbase would be open to collaborating with a potential Trump administration. The stance indicated the company’s willingness to engage with the new administration on crypto-related policies.

Armstrong Supports D.O.G.E

After the U.S. election, Armstrong expressed his support for one of Trump’s initiatives on X. He endorsed the proposal for a “Department of Government Efficiency” (D.O.G.E)—a concept that could only become a formal department if Congress approves. Tesla CEO Elon Musk and American entrepreneur Vivek Ramaswamy ​will spearhead the initiative.

Earlier this year, at the Bitcoin 2024 conference, Trump unveiled plans to create a crypto advisory council. The council would focus on shaping regulations that benefit the cryptocurrency industry to foster a more supportive environment for digital assets. This move aligns with his broader vision of establishing the U.S. as a global leader in the crypto space.

The duo meeting could also align with Trump’s broader strategy to position the U.S. as a dominant force in the global crypto market. Trump’s vision involves implementing policies that support the crypto industry’s growth, fostering innovation, and ensuring regulatory frameworks that encourage development within the industry.

Armstrong’s Stance on Pro-Crypto Candidates

In 2020, Armstrong emphasized that the company would refrain from backing any political causes or candidates that did not directly align with its mission. He stated that such support would be a distraction from the company’s core objectives. 

Armstrong’s stance seemed to shift notably in 2023 after Coinbase received a Wells notice from the SEC and faced a lawsuit accusing it of offering unregistered securities. This legal action likely prompted him to reconsider his previous neutral position. Armstrong became more vocal in supporting regulatory reforms and aligned more closely with political figures advocating for pro-crypto policies. 

Following the SEC’s Wells notice, the exchange CEO urged crypto users to vote for “pro-crypto candidates” to secure clearer regulatory guidance for the industry. 

In 2024, he took this further by encouraging his followers on X to support Republican candidates for the U.S. Senate in Massachusetts and Pennsylvania.