•  BiT Global has officially dismissed its lawsuit against Coinbase over the delisting of Wrapped Bitcoin.
  • The dismissal was filed jointly and with prejudice, which means the case cannot be reopened.
  • Both parties agreed to pay their own legal costs and did not reveal any settlement terms.
  • Coinbase removed Wrapped Bitcoin citing governance and risk issues following a custody shift involving BiT Global.
  • BiT Global accused Coinbase of delisting Wrapped Bitcoin to favor its own token called cbBTC.

Coinbase has officially been released from a legal dispute brought by BiT Global over the delisting of Wrapped Bitcoin (WBTC). The lawsuit, filed in December 2024, has now ended with a voluntary dismissal filed on June 6. Both companies agreed to cover their own legal fees, closing the case permanently and barring any future filings on the matter.

The decision came after a series of courtroom setbacks for BiT Global, which challenged Coinbases decision to remove WBTC. The legal complaint accused Coinbase of delisting WBTC to favor its own competing token, cbBTC, launched soon after. However, with the court leaning in Coinbases favor, BiT Global withdrew its complaint before a final ruling.

Coinbase maintained that WBTC no longer met its listing standards due to governance concerns and shifting risk factors. The company defended its actions as standard risk controls for digital asset integrity. Following the dismissal, Coinbase confirmed it has no plans to reinstate the delisted WBTC token.

Wrapped Bitcoin Custody Conflict

The dispute originated shortly after BitGo partnered with BiT Global to co-custody the Bitcoin reserves backing WBTC. Under the arrangement, a portion of these reserves would be relocated to Hong Kong, outside of U.S. jurisdiction. This raised industry concerns due to BiT Globals known connections to entrepreneur Justin Sun.

Coinbase cited the custody shift as a key reason for the delisting, emphasizing the potential risks to user security. The exchange viewed the new custody model as incompatible with its compliance and governance policies. BiT Global, however, interpreted the move as a pretext for suppressing WBTC and promoting cbBTC.

The legal case became a flashpoint in broader industry debates over token custody and listing authority. As centralized exchanges grow more influential, control over token infrastructure has become increasingly contentious. The WBTC situation illustrated how regulatory uncertainty continues to shape such strategic decisions.

Legal Setback Prompted Withdrawal

In March, the court rejected BiT Globals request for a preliminary injunction to halt the delisting of WBTC. The judge ruled that BiT Global failed to show immediate harm resulting from the tokens removal, severely weakened the cases foundation.

In a subsequent May hearing, the judge indicated an intent to dismiss the case entirely for lack of legal merit. Before the court issued a final decision, BiT Global opted to end the lawsuit voluntarily. The company did not provide a public statement explaining the decision.

Coinbase welcomed the resolution and reiterated its compliance priorities regarding token listings. The company confirmed its position and emphasized that it had no intention of restoring WBTC trading. cbBTC continues to expand as Coinbases officially supported wrapped Bitcoin alternative.