Paul Grewal Defends Coinbase In $1B Lawsuit Over wBTC Delisting

The post Paul Grewal Defends Coinbase In $1B Lawsuit Over wBTC Delisting appeared first on Coinpedia Fintech News

Recently, Bit Global had filed a lawsuit against Coinbase Global Inc claiming that Coinbase unlawfully delisted its WBTC token so it could promote the rival cbBTC.  BiT Global had alleged that Coinbase’s decision to delist wBTC was to promote its own competing product, cbBTC, that caused massive financial losses and deteriorated consumer confidence in wBTC.  Coinbase is being sued for over $1 billion by BiT Global Digital

The lawsuit had also alleged that Coinbase’s listings of meme coins and tokens that have “no inherent value” prove that the exchange delisted WBTC in a bid to have a monopoly over the industry. It also restated that delisting WBTC in place of these memecoins proves that the exchange did not follow any defined listing standards.

Paul Grewal Defends

A day after the lawsuit, Coinbase’s CLO, Paul Grewal, defended the exchange’s approach, and emphasized its commitment to high listing standards. He reacted to criticism of the exchange’s token listing and delisting practices after the lawsuit accused the company of anticompetitive behavior regarding Wrapped Bitcoin.

“When an asset no longer meets our listing standards, we will drop it. When another asset can meet or exceed market requirements without sacrificing those standards, we will list it,” Grewal stated on X.

Justin Sun Criticises

Grewal’s X post drew backlash from the community, including from Tron founder Justin Sun, who questioned the company’s transparency. He questioned the co-ordination between Grewal’s statement and earlier remarks by Coinbase CEO Brian Armstrong as Brian had stated that the exchange is “asset agnostic” due to its belief that “consumers should have a choice in the crypto economy.”

BiT Global claims Coinbase’s actions were designed to steer market dominance toward cbBTC. The exchange had announced the token delisting on Nov. 19, citing undisclosed failures to meet its standards for listing tokens.