It was recently added to the Coinbase exchange by Bit Global. WBTC We shared the information that a lawsuit was filed regarding delist. On that day, we talked about how this delist decision could be a justified step both for Tron founder Justin Sun’s possible dominance of WBTC and for bringing cbBTC to the forefront. Coinbase just made a statement regarding its objection to the case and touched upon important details.
Justin Sun, TRX and Coinbase
Been here for years Justin Sun‘of crypto- We’re talking about how controversial a figure he is in his field. TRX Even though he has grown over the years, Justin Sun has always been a name that experienced community members approach with skepticism. For example, Sun recently said, “We will announce something big for TRX soon.” However, everyone has already forgotten about that announcement and nothing big has been announced. For Sun, such speculative steps are simply his misdeeds.
Coinbase exchange objected to the “unfair delist” lawsuit filed against them regarding WBTC and mentioned that the biggest problem is the risk of WBTC coming under the control of someone like Justin Sun.
Coinbase reserved a special place for Sun in its objection text, which is more than 30 pages;
“Based on a rigorous internal process, Coinbase has determined that wBTC should be delisted from the Coinbase exchange because the risk of control of wBTC falling into the hands of Justin Sun is unacceptable.
BiT is now asking the Court to immediately overrule Coinbase’s decision that continuing to list wBTC could jeopardize the integrity of its platform and put customers at risk. Bit, coinbaseIt is trying to force .to do business with an organization that no longer meets Coinbase’s standards due to Mr. Sun’s “significant involvement.” Yet, Mr. Sun’s name and connection to wBTC are conspicuously absent from BiT’s Complaint and TRO request. Nor is it acknowledged that he has been repeatedly accused, investigated and sued for financial misconduct, and that reports of his alleged misdeeds abound in the press and the broader crypto community. No law supports BiT’s claims, and certainly none forces Coinbase to host an asset on its exchange that is linked to an individual with an alleged long history of fraud and market manipulation.
In August 2024, the BitGo company, in partnership with Plaintiff BiT’s Mr. Sun, held in reserve Bitcoin
$107,285.9 announced a joint venture with which it will share control of “wrapped Bitcoin” (wBTC), a collateralized digital asset (aka cryptocurrency). The basis for wBTC is that billions of dollars worth of Bitcoin must be held in reserve by an issuer that can be trusted to handle those reserves. Coinbase, like many others in the industry, had serious questions about whether BiT could be a trustworthy manager given Mr. Sun’s involvement. He reportedly violated industry and government standards to prevent fraud. He was sued by the SEC for fraud and market manipulation. He is reportedly being investigated for potential criminal offenses by both the FBI and the SDNY U.S. Attorney’s Office. And just last year, Coinbase closed the account of a company affiliated with Mr. Sun, owned by one of Mr. Sun’s known associates, for violating Coinbase’s Terms of Service.
The damages suffered by Coinbase are therefore both discernible and legitimate and outweigh the minor damages claimed by BiT. Users looking for wBTC will be able to continue purchasing from other exchanges, and any wBTC they currently own will remain in their Coinbase wallet. BiT’s exaggerated lock-in claims misrepresent the highly dynamic wrapped token space. “Furthermore, any reputational damage caused by the delist decision is unlikely to outweigh the reputational blow BiT suffered when it associated itself with Justin Sun.”
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
