Bit Global – a company associated with TRON founder Justin Sun – has agreed to withdraw the lawsuit against Coinbase regarding the delisting of wBTC, only after Coinbase launched the competing cbBTC Token.
According to the legal file on Friday, Bit Global agreed to withdraw the lawsuit "with prejudice", meaning it cannot be re-filed with the same content. Both parties also agreed to bear their own legal costs.
"This is an important victory, affirming our right to protect user safety," Paul Grewal – Coinbase's Chief Legal Officer – shared on X. "We will not be forced to list risky assets."
wBTC and cbBTC are both Bitcoin Tokens "wrapped" for use on Ethereum. However, they require a centralized intermediary to hold the actual Bitcoin and issue the corresponding Token. Justin Sun's involvement in wBTC previously led DeFi platforms like MakerDAO and Aave to consider removing wBTC from their collateral assets. Ultimately, they chose to tighten risk conditions instead of completely removing it.
The lawsuit, represented by the law firm Kneupper & Covey, was filed by Bit Global in December 2024, alleging that Coinbase's delisting of wBTC was an unfair competitive practice and violated multiple federal and state laws.
"After wBTC proved its value, Coinbase suddenly changed the rules, delisting this Token immediately after launching its copy cbBTC," the lawsuit stated. However, previous efforts to prevent Coinbase from removing wBTC failed when a federal judge declared that Coinbase has the right to decide on Token listings.
BitGo – the original wBTC custodian – bringing Justin Sun into the partnership also faced significant criticism from the community. BitGo CEO Mike Belshe responded: "We always prioritize security standards. Eventually, people will realize this is just an overblown issue."
Currently, wBTC has a Capital of approximately $13.6 billion, while cbBTC reaches around $4.7 billion – both approaching their ATH, according to data from CoinGecko.
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The article Bit Global of Justin Sun Withdraws Lawsuit with Coinbase first appeared on CoinMoi.
