BiT International, a crypto custody agency tied to entrepreneur Justin Solar, has voluntarily dismissed its lawsuit in opposition to Coinbase over the delisting of Wrapped Bitcoin (WBTC).
The transfer ends a months-long authorized dispute that spotlighted rising tensions between centralized exchanges and token custodians as management over key infrastructure turns into more and more contested.
Filed on June 6 within the US District Court docket for the Northern District of California, the joint stipulation of dismissal closes the case with prejudice, which prevents it from being refiled.
Each events agreed to cowl their very own authorized charges and didn’t disclose settlement phrases, if any.
Dispute over custody shift
BiT International initially filed swimsuit in December, weeks after Coinbase introduced that WBTC could be delisted from its platform. The alternate mentioned the token not met its itemizing requirements, citing governance and danger considerations.
Days earlier, BitGo, the first custodian for WBTC, had revealed a brand new partnership with BiT International to diversify the token’s Bitcoin reserve holdings exterior the US.
BiT International was set to function a co-custodian, with reserves partially relocated to Hong Kong. The transfer sparked criticism within the crypto business attributable to BiT International’s recognized ties to Solar, who was going through regulatory probes within the US on the time.
Coinbase argued that permitting WBTC to fall below Solar-affiliated management posed an “unacceptable danger” to consumer safety and market integrity.
BiT International, in flip, alleged that Coinbase’s rationale masked a battle of curiosity. The lawsuit accused the alternate of utilizing the delisting to undermine a competing product, WBTC, in favor of its personal wrapped Bitcoin token, cbBTC, which Coinbase launched shortly afterward.
The agency described the delisting as a “money seize” designed to spice up cbBTC’s market share by sidelining its most important rival.
Authorized setback preceded withdrawal
The case suffered a serious blow in March when Decide Araceli Martinez-Olguín denied BiT International’s movement for a preliminary injunction, ruling that the agency had not demonstrated imminent hurt from the delisting.
By Could, throughout a listening to, the choose signaled that she was inclined to grant Coinbase’s movement to dismiss the case fully, citing an absence of authorized grounds to proceed.
With the court docket leaning closely in Coinbase’s favor, BiT International opted to drop the case earlier than a proper ruling was issued. The corporate has not supplied a public clarification for the withdrawal and didn’t reply to media inquiries.
Coinbase, for its half, reaffirmed its stance following the dismissal. The alternate’s Chief Authorized Officer Paul Grewal mentioned in a social media submit on June 9:
“Now we have zero plans to relist WBTC.”
The case highlighted how custody selections and token itemizing insurance policies have gotten flashpoints in an business nonetheless missing unified regulatory oversight. Whereas WBTC stays the dominant wrapped Bitcoin token by market cap, Coinbase’s cbBTC has grown quickly in adoption since its launch.
