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. He added:
“We lay out why this lawsuit lacks any semblance of merit and why their request for a TRO should be denied.”
Concerns about Sun
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. The company added that BiT failed to address Coinbase’s questions about the ultimate ownership of WBTC reserves, exacerbating its concerns.
According to the filing:
“BiT seeks to force Coinbase to do business with an entity that no longer complies with Coinbase’s standards due to Mr. Sun’s ‘material[] involve[meant].’”
The exchange further claimed that its decision aligns with its responsibility to protect platform integrity and customer confidence, citing past instances where assets were delisted for similar reasons.
Delisting damages
Go to Source to See Full ArticleAuthor: Assad Jafri
