Key Takeaways:
- Coinbase and BiT Global settled their wBTC delisting dispute, closing the lawsuit with prejudice.
- The suit had sought over $1 billion in damages, claiming the delisting favored Coinbase’s cbBTC token.
- Coinbase reported mixed Q1 earnings, with revenue up but net income down 94%.
Coinbase and BiT Global have reached a settlement in their legal dispute over the delisting of BiT Global’s wrapped bitcoin (wBTC) token from the exchange.
According to a joint court filing, BiT Global has agreed to dismiss its lawsuit against Coinbase with prejudice, preventing future legal action on the matter.
Both parties will cover their own legal costs. Details of any further settlement terms were not disclosed.
BiT Global Sued Coinbase Over wBTC Delisting in California Court
BiT Global filed the suit last year in the Northern District of California, after Coinbase removed wBTC from its platform.
The exchange cited “unacceptable risk” that the token could be controlled by Chinese-born crypto billionaire Justin Sun, who became affiliated with wBTC through a partnership in August 2023.
Coinbase raised concerns after Sun’s involvement, questioning BiT Global about his role in the token’s operations.
Meanwhile, Sun-backed World Liberty Financial switched its cbBTC holdings in favor of wBTC following his appointment as an advisor.
BiT Global argued the delisting was unjustified and damaged both liquidity and market confidence in wBTC, while allegedly giving an edge to Coinbase’s rival product, cbBTC, launched two months prior to the delisting.
BiT Global has been a joint custodian of wBTC’s Bitcoin reserves, alongside crypto firm BitGo, since August 2024.
The lawsuit sought more than $1 billion in damages and requested injunctive relief to prevent further harm.
However, with the dismissal finalized, the legal chapter between the two firms is now closed.
Coinbase Q1 Revenue Climbs, But Profit Falls 94%
Coinbase reported mixed first-quarter results, with revenue rising 24% year-over-year to $2 billion, but falling short of analyst expectations and down 10% from the previous quarter.
While transaction revenue grew to $1.26 billion, its subscription and services division—covering staking and custodial offerings, rose 37% to nearly $700 million, reflecting growing diversification beyond trading.
Despite the revenue uptick, net income plunged 94% to $66 million as the company marked down its crypto holdings amid market volatility.
Adjusted earnings stood at $526.6 million, or $1.94 per share, still below last year’s figure of $2.53. Operating expenses surged 51% to $1.3 billion due to aggressive marketing and asset write-downs.
Coinbase’s earnings were weighed down by unpredictable macroeconomic conditions and fluctuations in digital asset prices.
However, the company noted its second-highest ever monthly user count, with CFO Alesia Haas highlighting increased engagement across non-trading services.
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