A significant legal challenge in the cryptocurrency industry has concluded, with Coinbase emerging victorious in its dispute with BiT Global. The lawsuit, centered around Coinbase’s decision to delist Wrapped Bitcoin (WBTC), has been withdrawn by BiT Global, crucially, “with prejudice,” signifying a definitive end to the matter. This outcome reinforces Coinbase’s discretion in managing its platform’s listed assets.
Origins of the Controversy
The dispute began in late 2024 when Coinbase announced the delisting of Wrapped Bitcoin (WBTC), citing its non-compliance with the exchange’s listing criteria. This decision followed Coinbase’s introduction of its proprietary wrapped Bitcoin variant, cbBTC. Concurrently, there was criticism directed at BitGo, the primary issuer of WBTC, for its association with BiT Global. This partnership, notably, brought TRON founder Justin Sun into proximity with WBTC’s management. It was speculated that Sun’s involvement might have influenced Coinbase’s decision to delist WBTC.
BiT Global, however, perceived the situation differently. In mid-December 2024, the organization initiated legal proceedings against Coinbase, alleging that the delisting inflicted damage upon WBTC. BiT Global sought substantial financial compensation and a temporary restraining order (TRO) to prevent the delisting from proceeding.
Coinbase’s Policy Affirmed
The resolution saw BiT Global withdraw its lawsuit. Paul Grewal, Chief Legal Officer (CLO) for Coinbase, confirmed the dismissal, specifically noting that it was “with prejudice.” This crucial legal term means BiT Global is barred from re-filing the same lawsuit in the future, securing a decisive win for Coinbase.
Grewal underscored Coinbase’s commitment to rigorous listing standards, emphasizing the importance of customer trust and regulatory compliance. He stated, “We hold ourselves to high listing standards because we value client trust and compliance — and we will not be compelled to continue listing an asset that puts our clients at risk. Not today, not ever.” This robust statement highlights Coinbase’s firm stance on its asset management policies.
And there it is. BiTGlobal just dismissed – with prejudice– its contrived lawsuit over our decision to delist wBTC. This important win affirms our clear right to manage security and risk for @coinbase users. 1/3 pic.twitter.com/MnJDR1D4La
— paulgrewal.eth (@iampaulgrewal) June 6, 2025
At the time of this report, neither Justin Sun nor BitGo had publicly commented on the lawsuit’s withdrawal. Earlier, BitGo CEO Mike Belshe had publicly addressed criticisms regarding the BiT Global partnership, asserting that the agreement was intended to eliminate single points of failure and broaden the project’s reach. Belshe had also expressed reservations about cbBTC. The conclusive dismissal of the lawsuit solidifies Coinbase’s position and autonomy in its listing decisions within the competitive wrapped Bitcoin market.
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