Coinbase faces market manipulation allegations, and Kraken Australia fined $5M: Law Decoded

A lawsuit against Coinbase alleges that it intended to monopolize the Wrapped Bitcoin market in violation of the Sherman Act.

BiT Global Digital is suing crypto exchange Coinbase for more than $1 billion, saying the corporation is damaging the cryptocurrency market by delisting Wrapped Bitcoin.

BiT Global's case, filed on December 13, contends that the crypto exchange's delisting move was intended to promote its own competitive product, Coinbase Wrapped Bitcoin (cbBTC).

The lawsuit alleges attempted monopolization of the Wrapped Bitcoin (WBTC) market, predatory practices to undermine the asset's market position, and false statements implying WBTC did not meet listing standards.

A day after the complaint, Coinbase's chief legal officer, Paul Grewal, defended the exchange's strategy, highlighting the company's dedication to high listing standards.

"When an asset no longer fits our listing requirements, we will remove it. We will list another asset when it meets or exceeds market requirements without compromising those standards," Grewal wrote on X.

Australia Fines Kraken Operator $5 Million for Regulatory Violations

On December 12, Justice John Nicholas decided that Bit Trade, which operates Kraken Australia, must pay an 8 million Australian dollar ($5.1 million) fine within 60 days and court fees.

The Australian Federal Court ruled that the Kraken Australia operator, based in the United States, failed to meet design and distribution requirements and operated as a credit facility without a license.

The Australian Securities and Investments Commission demanded $12.8 million, while Bit Trade proposed limiting the fine to $2.5 million. Nicholas referred to ASIC's request as "excessive" and Bit Trades' as "insufficient."

Vancouver Approves Motion to Become a 'Bitcoin-Friendly City

The Vancouver City Council approved a vote to investigate Bitcoin's (BTC) integration into its financial processes, including a potential BTC reserve and payment option.

Vancouver Mayor Ken Sim introduced the resolution to become a "Bitcoin-friendly city" at a council meeting on December 11.

According to Sim, six councillors backed the motion, three were missing, and two were opposed, effectively approving it and attempting to secure "the next 100 years" for the Canadian city.

Judge Criticizes FDIC for 'Lack of Good Faith' in Censoring Crypto Letters to Banks

Amid a Coinbase-backed Freedom of Information Act (FOIA) litigation, a US federal judge has reprimanded the Federal Deposit Insurance Corporation (FDIC) for its role in the suppression of crypto "pause letters" sent to banks.

In a text order dated December 12, District Court Judge Ana Reyes expressed concern about the FDIC's "lack of good-faith effort in making nuanced redactions."

Judge Reyes directed the FDIC to make more "thoughtful redactions" and re-file the letters by January 3, stating in the text order that the FDIC "cannot simply blanket redact everything that is not an article or preposition."