Coinbase Permitted To Delist Wrapped Bitcoin
A federal judge rejected BiT Global’s request for a temporary restraining order, concluding that the Hong Kong-based company had not demonstrated that Coinbase’s plans to delist Wrapped Bitcoin, or WBTC, would cause immediate and irreversible harm.
“After all, I don’t have any proof from you regarding what’s going to happen,” U. S. Araceli Martínez-Olguín, the district judge, informed the lawyer for BiT Global. “I won’t stop Coinbase from taking WBTC off of its list.
BiT Global filed a lawsuit against Coinbase last week, claiming that the exchange’s intentions to delist WBTC on Thursday while pushing wrapped Bitcoin amounted to unfair business practices.
BiT Global, which works with BitGo as a custodian for WBTC reserves, requested a ruling that would prevent Coinbase from removing the $14 billion product from its exchange.
Coinbase responded to the lawsuit filed by BiT Global earlier this week by stating that it was driven to delist WBTC due to the “unacceptable risk that control of WBTC would fall into the hands of Justin Sun,” who is a co-founder of the layer-1 blockchain Tron.
, Sun was charged with fraud and market manipulation in an SEC lawsuit filed last year, although he vehemently disputes the accusations. Sun disparaged Coinbase’s wrapped Bitcoin product, cbBTC, when it was introduced in September, referring to it as “central bank Bitcoin” and a “dark day for BTC.
Sonal Mehta, Coinbase’s lawyer, retorted that the volume of WBTC trading on Coinbase is less than 1% of WBTC’s total trading, so there could not be “lost sales.”.
“This case concerns Coinbase’s right to take the necessary actions to safeguard its platform,” she stated. It has nothing to do with monopolies. It’s not about allegations of antitrust. Wrapped Bitcoin utilized in decentralized finance.
The products, which are 1:1 backed by Bitcoin reserves, let users use Bitcoin for trading, lending, and borrowing through decentralized applications.
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