tl;dr
Coinbase is resisting BiT Global's legal efforts to stop the delisting of wrapped Bitcoin (WBTC). The exchange cites concerns about the token's association with TRON founder Justin Sun and lack of transparency about its reserves. BiT accuses Coinbase of unfair delisting to promote its own asset, cbB...
Coinbase is resisting BiT Global's legal efforts to stop the delisting of wrapped Bitcoin (WBTC), citing concerns about the token's association with TRON founder Justin Sun and lack of transparency about its reserves. BiT Global accuses Coinbase of unfairly delisting WBTC to promote its own asset, cbBTC, claiming reputational and financial harm, while Coinbase dismisses claims of irreparable harm and highlights declining WBTC circulation before delisting announcement.
A hearing on BiT's TRO request, scheduled for Dec. 18, could temporarily delay Coinbase's wBTC delisting set for Dec. 19. Coinbase pushed back against BiT Global’s legal attempt to halt its planned delisting of wrapped Bitcoin (WBTC), arguing that the lawsuit lacks merit and the firm’s request for a temporary restraining order (TRO) should be denied.
According to court filings, Coinbase decided to delist WBTC due to concerns about risks stemming from its association with TRON founder Justin Sun and the lack of clarity about the token’s reserves. Coinbase chief legal officer Paul Grewal said the filing is a response to BiT’s “bogus” lawsuit.
In a court filing submitted to the US District Court for the Northern District of California, Coinbase detailed its months-long internal review process that led to the delisting decision. The exchange cited Sun’s widely publicized history of alleged fraud and market manipulation, combined with BiT’s failure to provide transparency on its ownership structure, as presenting an “unacceptable risk” to Coinbase’s platform and its users. Coinbase cited Sun’s allegedly “long history of alleged fraud and market manipulation” as posing an “unacceptable risk” to its platform and customers.
BiT Global, the plaintiff in the case, has accused Coinbase of unfairly delisting wBTC to promote its own competing asset, cbBTC. The firm further claims the decision will cause significant reputational and financial harm. In its motion, BiT argued that the delisting could erode consumer trust in WBTC and limit access to a critical trading platform. It further described Coinbase’s delisting as a “signal to the digital asset community that WBTC is less trustworthy than other tokens,” a move it contends violates California’s Unfair Competition Law.
However, Coinbase countered that less than 1% of global WBTC transactions occur on its platform, dismissing BiT’s claims of irreparable harm. It also pointed to declining WBTC circulation before its delisting announcement, which it attributed to Sun’s involvement.
The case highlights mounting scrutiny over Sun’s influence in the crypto space. Sun has faced lawsuits from the Securities and Exchange Commission (SEC) and is reportedly under investigation for potential criminal misconduct. A hearing on BiT’s TRO request is scheduled for Dec. 18. If granted, it would temporarily delay Coinbase’s delisting of wBTC, currently set for Dec. 19.