Coinbase, a leading cryptocurrency exchange, is embroiled in a $1 billion lawsuit filed by BiT Global Digital Limited. The Hong Kong-based crypto exchange alleges that Coinbase’s decision to delist Wrapped Bitcoin (wBTC) in November was a strategic move to promote its own competing token, cbBTC.

According to the Dec. 13 filing in the Northern District of California, BiT Global claims Coinbase’s actions caused significant financial losses, damaged consumer trust in wBTC, and violated U.S. antitrust laws under the Sherman Act. The lawsuit further accuses Coinbase of predatory practices, including false statements suggesting wBTC failed to meet listing standards.

Coinbase announced the delisting of wBTC on Nov. 19, citing undisclosed failures in meeting its listing requirements. A Coinbase spokesperson reiterated the company’s commitment to high listing standards, stating, “Should an asset fail to meet those standards, it is delisted.”

BiT Global, a joint custodian of wBTC’s Bitcoin reserves alongside BitGo since August, disputes these claims. The lawsuit alleges Coinbase delisted wBTC shortly after launching cbBTC to undermine its primary competitor in the wrapped Bitcoin market.

Kevin Kneupper, a lawyer representing BiT Global, criticized Coinbase’s actions: “If an exchange of Coinbase’s size can delist a cryptocurrency just as it plans to launch its own competing product, who’s safe? And who’s next?”

The lawsuit seeks over $1 billion in damages and injunctive relief to prevent further harm to wBTC. BiT Global maintains that Coinbase’s actions are a blatant attempt to dominate the wrapped Bitcoin market by eliminating competition.

As the case unfolds, this legal battle raises concerns about fairness and competition in the rapidly evolving cryptocurrency space.