Federal Judge Sides with Coinbase
A federal judge has ruled in favor of Coinbase, denying BiT Global’s motion for a TRO to halt the delisting of Wrapped Bitcoin (wBTC). The decision was made during a virtual hearing on Dec. 18 in the U.S. District Court for the Northern District of California, has ruled in favor of allowing Coinbase to move forward with its intended delisting of wBTC trading on Dec. 19. Judge Araceli MartÃnez-OlguÃn ruled there was a lack of evidence of “imminent irreparable harm” by BiT Global in its lawsuit.
The lawsuit was filed after Coinbase announced it would be delisting wBTC on Nov. 19, which BiT Global argued would destabilize the market of the token and negatively affect holders.
BiT Global’s Legal Battle
BiT Global, the firm associated with Tron founder Justin Sun, filed its lawsuit against Coinbase on Dec. 13, arguing that the delisting would lead to substantial financial losses for investors. However, Judge MartÃnez-OlguÃn pointed out the delay between Coinbase’s initial announcement and the lawsuit filing, which weakened BiT Global’s argument.
The court also pointed out that the legal team representing BiT Global made speculative arguments without any specific evidence on how Coinbase’s actions could potentially hurt the market.
Justin Sun’s Controversial Involvement
Coinbase also justified delisting wBTC on claims of concerns over the ownership structure of BiT Global, given its links with Justin Sun. The exchange asserted that Sun’s involvement raised an “unacceptable risk” given his legal battles with various U.S. authorities, including the Securities and Exchange Commission.
In response, BiT Global called Coinbase out for scapegoating Sun, claiming the exchange’s reasoning was a pretext. “Rather than address the concerns earlier, Coinbase delayed their due diligence and decision-making until months after Sun’s involvement was announced,” BiT Global’s legal team argued.
What’s Next for wBTC?
The ruling allows Coinbase to delist wBTC as planned, but BiT Global may refine its legal strategy to challenge the decision further. The controversy highlights broader concerns about centralized exchanges’ power over token listings and the influence of regulatory scrutiny on market dynamics.
The case shows the tenuous balance between market security and broader ramifications of decisions to delist, especially tokens with a link to figures such as Justin Sun. Whether BiT Global proceeds to take further legal action is yet to be seen.
