Bit The move ends a months-long legal dispute over growing tensions between centralized exchanges and token custodians as control of key infrastructure $WBTC
becomes increasingly contested. Filed on June 6 in the U.S. District Court for the Northern District of California, the joint disposition clause closes the case with prejudice, preventing it from being retried. Both parties have agreed to cover their own legal fees and have not disclosed the terms of the settlement, if any. Dispute over the custody shift: Bit Global filed an initial lawsuit in December, weeks after Coinbase announced that WBTC would be delisted from its platform. The exchange said the token no longer met listing criteria, citing governance and risk concerns. Days earlier, Bitgo, the primary custodian of WBTC, announced a new partnership with BIT Global to diversify the token's Bitcoin Reserve holdings outside the United States. BIT Global was appointed as a co-convener, with the reserves partially moved to Hong Kong. The move drew criticism in the crypto industry due to Bit Global's known ties to Sun, who was facing regulatory investigations in the United States at the time. Coinbase argued that allowing WBTC to fall under Sun's control was an "unacceptable risk" to user security and market integrity. Bit Global, in turn, alleged that Coinbase's rationale concealed a conflict of interest. The lawsuit accused the exchange of using the delisting to undermine a competing product, WBTC, in favor of a proprietary Bitcoin token, CBBTC, which Coinbase launched shortly thereafter. The company described the delisting as a “cash grab” designed to boost CBBTC’s market share by marginalizing its main competitor. The legal setback preceded the dismissal. The case suffered a major blow in March when Judge Araceli Martinez-Olguin denied Bit Global’s request for a preliminary injunction, ruling that the company had not demonstrated imminent harm from the delisting. By May, during a hearing, the judge indicated she was leaning toward granting Coinbase’s request to dismiss the case entirely, citing a lack of legal grounds to proceed. With the court heavily favoring Coinbase, Bit Global opted to dismiss the case before a formal ruling was issued. The company did not offer a public explanation for the dismissal and did not respond to media inquiries. Coinbase, for its part, reiterated its position after the dismissal. "We have zero plans to recover WBTC," Paul Grewal, the exchange's chief legal officer, said in a social media post on June 9. The case highlighted how complex custody decisions and token listing policies have become in an industry that still lacks uniform regulatory oversight. While WBTC remains the dominant Bitcoin token by market cap, Coinbase's CBBTC has grown rapidly in adoption since its launch. Mentioned in this article$BTC
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