A federal judge in California has denied BiT Global Digital Ltd.’s request for a temporary restraining order (TRO) to prevent crypto exchange Coinbase from delisting wrapped Bitcoin (wBTC) from its platform.

US District Judge Araceli Martínez-Olguín ruled Wednesday that BiT Global failed to present sufficient evidence to demonstrate “imminent irreparable harm” if the delisting proceeds.

Coinbase Cleared to Delist wBTC

The judge also criticized the speculative nature of BiT Global’s claims and noted the company’s delay in filing the complaint following Coinbase’s delisting announcement. The ruling was a setback for BiT Global, which manages wBTC – a token pegged to Bitcoin’s value that facilitates decentralized finance (DeFi) activities on blockchain networks like Ethereum.

Coinbase, which has supported wBTC trading since 2020, argued that its decision to delist the token was driven by concerns over its ties to Justin Sun, the founder of the Tron cryptocurrency.

Sun was charged with fraud and securities violations by the US Securities and Exchange Commission (SEC) in March 2023. In its legal filing, Coinbase stated that the association with Sun posed an “unacceptable risk,” a claim BiT Global did not address in its complaint or TRO request.

BiT Global ‘Lost’ its Bid to Halt wBTC Delisting

Paul Grewal, Coinbase’s chief legal officer, welcomed the court’s decision, stating on X that BiT Global “lost” its bid to prevent the delisting.

“BiT Global lost. Today they asked the Court to order us to stop delisting wBTC to protect our customers. Today the Court said no. We appreciate the Cou