The $1 billion legal battle between Bit Global and Coinbase has come to a quiet end, as both companies agreed to dismiss the case with prejudice.
Author: Sahil Thakur
No damages awarded as both firms agree to dismiss high-stakes lawsuit with prejudice
The $1 billion legal battle between Bit Global and Coinbase has come to a quiet end, as both companies agreed to dismiss the case with prejudice, according to a court filing submitted Friday in the U.S. District Court for the Northern District of California.
The lawsuit, originally filed in December 2024, centered around Coinbase’s controversial decision to delist Wrapped Bitcoin (WBTC) shortly after launching its own rival token, cbBTC. Bit Global, a strategic partner in the WBTC project and linked to TRON founder Justin Sun, alleged that Coinbase engaged in anti-competitive behavior aimed at funneling liquidity to its in-house product.
However, the latest filing makes clear that neither party will receive financial damages, and both will bear their own legal costs — a signal that the matter has been settled without further escalation. Dismissal “with prejudice” means the case cannot be brought again.
Bit Global’s complaint claimed Coinbase “changed the rules” once WBTC’s utility was proven. The company accused Coinbase of manipulating its listing policies to benefit cbBTC, arguing the move violated state and federal antitrust laws.
But Coinbase, led by Chief Legal Officer Paul Grewal, maintained that the decision was based on internal risk management standards, not market manipulation. “We will not be bullied into continuing to list an asset that puts our customers at risk,” Grewal said in a statement following the dismissal.
Wrapped Bitcoin tokens like WBTC and cbBTC allow Bitcoin to be used within the Ethereum ecosystem. But they come with trade-offs — users must trust centralized entities to custody the Bitcoin backing these tokens. That trust was shaken last year when BitGo, the original WBTC custodian, partnered with Justin Sun, raising concerns among DeFi protocols like MakerDAO and Aave. Both ultimately tightened risk parameters for WBTC, but stopped short of delisting it.
Currently, WBTC holds a market cap of approximately $13.6 billion, while Coinbase’s cbBTC trails behind at $4.7 billion, according to CoinGecko. Both tokens are near their all-time high valuations.
Despite the initial fanfare, the lawsuit failed to gain traction in court. A federal judge had already ruled that Coinbase had the right to delist tokens at its discretion, undermining the legal foundation of Bit Global’s case.
BitGo CEO Mike Belshe, responding to earlier industry criticism, had called the controversy “a big nothingburger.” With Friday’s filing, that prediction appears accurate.
The case ends with no public settlement, no changes to Coinbase policy, and no impact on either token’s listing status elsewhere — at least for now.
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