Coinbase Sued by Crypto Rival Over ‘Wrapped’ Bitcoin Delisting

Cryptocurrency exchange Coinbase Global Inc. is facing a lawsuit alleging that the company kicked a rival’s wrapped token product off its platform in violation of federal and state laws.

Plaintiff BiT Global Digital Ltd. claims Coinbase delisted wBTC on its cryptocurrency platform shortly after launching a similar competing product called cbBTC, according to a complaint filed Friday in the US District Court for the Northern District of California.

At issue are “wrapped” tokens, digital assets pegged to the price of the Bitcoin cryptocurrency form of payment.

Users “wrap” their Bitcoin by depositing it into the digital wallet of a third ...