Originally published on: December 16, 2024
Coinbase, a major crypto exchange, is facing a lawsuit from BiT Global Digital for more than $1 billion. The lawsuit alleges that Coinbase’s decision to delist Wrapped Bitcoin was aimed at promoting its own competing product, Coinbase Wrapped Bitcoin (cbBTC), and has harmed the crypto market.
The lawsuit accuses Coinbase of attempted monopolization of the Wrapped Bitcoin market, predatory practices, and false statements about WBTC’s listing standards. Coinbase’s chief legal officer, Paul Grewal, has defended the exchange’s decision, emphasizing their commitment to high listing standards.
In another development, Kraken Australia, operated by Bit Trade, has been hit with a $5.1 million fine by the Australian Federal Court for failing to comply with design and distribution obligations and acting as a credit facility without a license.
On a more positive note, the Vancouver City Council has passed a motion to explore integrating Bitcoin into its financial operations, potentially creating a BTC reserve and offering a BTC payments option. Mayor Ken Sim aims to make Vancouver a “Bitcoin-friendly city.”
Meanwhile, a US federal judge has criticized the FDIC for its redaction of crypto “pause letters” sent to banks in a FOIA lawsuit. The judge ordered the FDIC to make more thoughtful redactions and re-file the letters by Jan. 3.
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