Originally published on: December 16, 2024
Coinbase, a major crypto exchange, is in hot water after being hit with a lawsuit by BiT Global Digital for over $1 billion. The lawsuit accuses Coinbase of damaging the crypto market by delisting Wrapped Bitcoin in favor of its own product, Coinbase Wrapped Bitcoin (cbBTC).
BiT Global claims that Coinbase’s delisting decision was an attempt to monopolize the Wrapped Bitcoin market, engaging in predatory practices to undermine the asset’s position. The lawsuit also alleges false statements were made by Coinbase suggesting that Wrapped Bitcoin did not meet listing standards.
In response, Coinbase’s chief legal officer, Paul Grewal, defended the exchange’s actions, emphasizing their commitment to high listing standards and market requirements.
Meanwhile, in Australia, the Federal Court ruled that Kraken Australia, operated by Bit Trade, must pay a fine of $5.1 million for failing to comply with design and distribution obligations and acting as a credit facility without a license. The Australian Securities and Investments Commission sought a larger fine, but the court deemed it excessive.
On a different note, Vancouver City Council passed a motion to explore Bitcoin integration into its financial operations, aiming to become a “Bitcoin-friendly city.” Mayor Ken Sim presented the motion to secure the city’s financial future.
In the US, a federal judge criticized the FDIC for redacting crypto “pause letters” sent to banks, calling for more thoughtful redactions. The judge ordered the FDIC to re-file the letters with better redactions by early January.
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