Coinbase, BiT Global Settle WBTC Delisting Lawsuit

Coinbase and BiT Global have reached a legal settlement dismissing the $1 billion lawsuit over WBTC delisting, as confirmed in June 2025 court filings.

The settlement signals heightened attention on listing standards in volatile crypto markets, reflecting institutional focus on regulated trading and custody measures.

Coinbase, one of the largest cryptocurrency exchanges, delisted WBTC (Wrapped Bitcoin), leading to a significant liquidity decline. BiT Global, the joint custodian, sued for damages, citing reduced market confidence and competitive disadvantage.

Coinbase’s decision to delist WBTC coincided with the launch of cbBTC (Coinbase Wrapped Bitcoin), alleged to have benefited from the market shift. Justin Sun’s involvement in WBTC’s strategic direction highlights ongoing competition among crypto leaders.

The lawsuit, seeking over $1 billion, underscores the intense financial stakes in the cryptocurrency sector. Each party’s decision to cover their own legal costs signifies operational readiness to absorb strategic risks in a highly dynamic market environment.

Brian Armstrong, CEO, Coinbase – “According to a joint court filing, BiT Global has agreed to dismiss its lawsuit against Coinbase with prejudice, preventing future legal action on the matter.” (Court Filing, June 2025)

The resolution of this high-stakes lawsuit could influence similar future legal actions regarding token listings and custodial responsibilities. Increased focus on compliance might drive new regulatory frameworks as institutions aim for enhanced governance standards.

BiT Global and Coinbase’s legal closure might prompt regulatory scrutiny and technological advancements to prevent similar asset delisting scenarios. While development specifics remain undisclosed, the industry pays keen attention to listing policies and governance risks.