Coinbase Opposing BiT Global's Legal Effort to Stop Bitcoin's Planned DelistingWBTC) with the argument that The fight is worthless And the company's motion for a temporary restraining order (TRO) should be denied.
according to court cases, Coinbase decided to delist WBTC due to concerns about the risks associated with its association with the founder of TRON. Justin Sun and lack of transparency about token reserves.
Paul Grewal, Coinbase's chief legal officer, said the case was in response to BiT's “bogus” lawsuit. He added:
“We explain why this lawsuit lacks merit and why their request for a TRO should be denied.”
Worry about Sun
In a lawsuit filed in the U.S. 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 fraud and market manipulation, along with BiT's failure to provide transparency on its ownership structure, as an “unacceptable risk” to the Coinbase platform and its users.
Coinbase cited Sun's “long alleged history of fraud and market manipulation” as an “unacceptable risk” to its platform and customers. The company added that BiT failed to respond to Coinbase's questions about the ultimate ownership of WBTC reserves, fueling its concerns.
According to the file:
“BiT seeks to compel Coinbase to do business with an entity that no longer complies with Coinbase's standards due to the 'meaning of Article (of Mr. Sun)'.”
The exchange also claimed that its decision was consistent with its responsibility to protect the integrity of the platform and customer trust, citing instances where assets had been delisted for similar reasons.
Eliminate damage
BiT Global, the plaintiff in the case, has accused Coinbase of unfairly delisting wBTC to promote its rival asset, cbBTC. The company also claims that the decision will cause serious reputational and financial damage.
In its action, BiT argued that delisting could destroy consumer confidence in WBTC and limit access to an important trading platform. It also described Coinbase's delisting as “a signal to the digital asset community that WBTC is less trustworthy than other tokens,” a move it claims violates California's unfair competition law.
However, Coinbase responded that less than 1% of global WBTC transactions take place on its platform and denied BiT's claims of irreparable harm. It also pointed to a drop in WBTC circulation prior to the delisting announcement, which it attributed to Sun's interference.
Coinbase also rejected BiT's claims that delisting would harm the greater public interest. They argued that wBTC holders still retain multiple ways to trade the token on other platforms and can store or transfer their holdings using Coinbase Wallet, a separate decentralized application.
The case highlights growing scrutiny over Sun's influence in the cryptocurrency space. Sun has faced complaints from the Securities and Exchange Commission (SEC) and is reportedly under investigation for possible criminal misconduct.
A hearing on BiT's TRO request is scheduled for December 18. If agreed, Coinbase's delisting of wBTC, currently set for December 19, will be temporarily postponed.
