Between Coinbase and Bit Global, Bit Global’s WRAPPED Bitcoin $105,309.73 (WBTC) token, which began with the removal of the token from the list in Coinbase, ended with an agreement between the two companies. The parties announced that they mutually waived the case and will cover the costs related to it. As a result of the agreement, Bit Global’s lawsuit last year at the US California Northern Regional Court will not be reopened.
Process that causes the case
The legal process began when Coinbase lifted the WBTC token from the platform on the grounds that there was an unacceptable risk ”. Coinbase’s main concern was that Justin Sun, a Chinese -born crypto currency entrepreneur, had an investor position in WBTC. Following Justin Sun’s signing a partnership agreement in August in August, Coinbase asked Bit Global to clarify his role in the project.
Coinbase, Bit Global’e questions to remain unanswered WBTC’yi removed from the list. According to the company’s statements, the fact that Sun had a say on this product increased the concern that the token might be open to malicious use.
Bit Global’s claims and competition of companies
Bit Global’in allegations submitted to the court, Coinbase’s decision to remove the WBTC list is unfair and this decision negatively affected the liquidity and reputation of the token said. In addition, the company argued that this decision aims to provide an advantage to CBBTC Coinbase’s rival product.
According to the court file, Coinbase launched the CBBTC, the opponent token about two months before he lifted WBTC. This led to an increase in competition between the two companies. Bit Global claimed that an unfair benefit was provided to investors who prefer CBBTC’s CBBTC.
Explanations of the parties and the scope of the agreement
Coinbase officials said that they made risk assessment to remove the tokens from the platform and that this decision aims to protect the security of users. Bit Global representatives, on the other hand, said that the decision was not fair and the company suffered economic losses.
No other details of the agreement have been shared with the public. Only, both companies will cover their legal expenses and the case will not be opened again. Apart from the agreement, no information was provided as to whether WBTC would be listed on platforms.
Upon these developments, sector experts point out that similar disputes can be experienced more often with regulatory uncertainties in the crypto currency market. In particular, the decisions of listing and subtracting of large platforms can significantly affect the future of both investors and relevant tokens. The close follow -up of the issue is important for the sector in terms of transparency and risk management.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
