Coinbase has issued a formal response to a lawsuit filed by BiT Global, a company tied to Justin Sun. The dispute arose after Coinbase announced it would delist wrapped Bitcoin (wBTC) from its platform on December 19.

BiT Global alleges that the delisting is defamatory and aims to monopolize the tokenized Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term market. The lawsuit highlights concerns over Coinbase’s decision, accusing the exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term of anti-competitive behavior.

Meanwhile, Coinbase introduced Apple Pay support for fiat-to-crypto conversions, reflecting US regulatory trends and Apple's growing interest in digital assets.

Coinbase Responds to wBTC Lawsuit

The conflict stems from changes in the custodianship of wBTC. In August, BitGo announced it would share two of the three operational keys for wBTC with BiT Global and its Singapore-based subsidiary. Coinbase raised concerns about these changes, citing increased protocol risk due to Sun’s involvement.

Bit Global, the custodian recently added to WBTC through its partnership with Justin Sun, has sued Coinbase over its delisting

They say Coinbase unfairly delisted WBTC to push its own rival product, cbBTC pic.twitter.com/8cpojx5mFX

— db (@tier10k) December 13, 2024

Paul Grewal, Coinbase’s Chief Legal Officer, addressed the lawsuit. He stated that the company’s response to BiT Global’s request for a temporary restraining order challenges the merits of the case. Grewal explained that the decision to delist wBTC followed internal reviews and was influenced by allegations of past financial misconduct involving Sun.

BiT Global Accuses Coinbase of Monopoly

BiT Global claims Coinbase’s actions promote its own product, cbBTC, over wBTC. It accuses Coinbase of “predatory practices,” noting that cbBTC’s market capitalization is $2 billion, significantly smaller than wBTC’s $13.4 billion.

The lawsuit also argues that delisting wBTC violates federal laws intended to prevent monopolistic practices. Coinbase, in its defense, stated that its platform accounts for less than 1% of wBTC transactions, minimizing any potential impact on BiT Global.

🚨BREAKING: #Coinbase responds to Justin Sun-connected BiT Global's lawsuit over delisting wBTC. pic.twitter.com/RZmhWiE5Cv

— SmartViewAI.Com (@smartviewai) December 18, 2024

Coinbase’s concerns are linked to Sun’s regulatory history, which includes investigations by the SEC and FBI. The case highlights ongoing tensions in the crypto industry regarding custodianship, competition, and regulatory scrutiny.

Coinbase, Apple Pay Expand Crypto

While Coinbase faces a lawsuit over the delisting of wBTC, it has expanded its offerings by integrating Apple Pay for fiat-to-crypto conversions.

Coinbase integrates ApplePay for #Bitcoin and crypto purchases pic.twitter.com/tN1ZbeW8sO

— Radar🚨 (@RadarHits) December 3, 2024

This move aims to enhance accessibility to digital assets. For Apple, it reflects a shift toward the growing crypto market, influenced by changing political and regulatory trends in the US, including the potential arrival of Paul Atkins at the SEC, as reported by Finance Magnates.

Apple, once cautious about embracing digital assets, has recently shown a more open stance. Historically, the company resisted crypto due to concerns about user value and its own ecosystem risks.

However, Apple has begun to collaborate with crypto platforms like Coinbase, signaling a more active exploration of the crypto space, aligned with the current digital landscape in the US.