Coinbase accused of market manipulation, Kraken Australia hit with $5M fine: Law Decoded
2024-12-17
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Crypto exchange Coinbase is being sued for more than $1 billion by BiT Global Digital, which is accusing the company of harming the crypto market through its decision to delist Wrapped Bitcoin.
The Dec. 13 complaint filed by BiT Global alleges the crypto exchange’s delisting decision aimed to promote its own competing product, Coinbase Wrapped Bitcoin (cbBTC).
The lawsuit involves allegations under the Sherman Act of attempted monopolization of the Wrapped Bitcoin WBTC market, claims of predatory practices to undermine the asset’s market position and accusations of false statements that imply WBTC failed to meet standards for listing.
A day after the lawsuit, Coinbase’s chief legal officer, Paul Grewal, defended the exchange’s approach, emphasizing its commitment to high listing standards.
“When an asset no longer meets our listing standards, we will drop it. When another asset can meet or exceed market requirements without sacrificing those standards, we will list it,” Grewal wrote on X.
Australia fines Kraken operator $5 million for regulatory breaches
On Dec. 12, Justice John Nicholas ruled that Bit Trade, which operates Kraken Australia, should pay a fine of 8 million Australian dollars ($5.1 million) within 60 days and also cover court costs.
The Australian Federal Court found that the United States-based Kraken Australia operator failed to comply with design and distribution obligations and acted as a credit facility without a license.
The Australian Securities and Investments Commission sought $12.8 million, while Bit Trade requested a limit to the fine of $2.5 million. Nicholas described ASIC’s request as “excessive” and Bit Trades’ as “insufficient.”
Vancouver passes motion to become a “Bitcoin-friendly city”
The Vancouver City Council passed a motion to enable the exploration of Bitcoin (BTC) integration into its financial operations, including a possible BTC reserve and payments option.
Vancouver Mayor Ken Sim introduced the motion to become what he said would be a “Bitcoin-friendly city” before a Dec. 11 council meeting.
Six councilors supported the motion, three were absent, and two were in opposition, effectively greenlighting the motion and aiming to secure “the next 100 years” for the Canadian city, according to Sim.
Judge slams FDIC’s “lack of good faith” in censoring crypto letters to banks
Amid a Coinbase-backed Freedom of Information Act (FOIA) lawsuit, a US federal judge has criticized the Federal Deposit Insurance Corporation (FDIC) for its hand in the redaction of crypto “pause letters” that were sent to banks.
District Court Judge Ana Reyes wrote in a Dec. 12 text order that the court is concerned by the FDIC’s “lack of good-faith effort in making nuanced redactions.” 
Judge Reyes ordered the FDIC to make more “thoughtful redactions” and to re-file the letters by Jan. 3 after writing in the text order that the FDIC “cannot simply blanket redact everything that is not an article or preposition.”