Coinbase Urges Court to Deny BiT Global’s Lawsuit Over Wrapped Bitcoin Delisting

Coinbase, a prominent U.S. cryptocurrency exchange, has asked a California court to dismiss a lawsuit filed by BiT Global, a company affiliated with Justin Sun, over the planned removal of Wrapped Bitcoin (wBTC) from its platform.

Background of the Lawsuit

BiT Global sued Coinbase on December 13, seeking $1 billion in relief and a temporary restraining order to prevent the delisting of wBTC. The company claimed that the delisting would cause irreparable harm to the token’s economics and was unjustified, citing Coinbase’s listing of other allegedly unserious cryptocurrencies like meme coins.

Coinbase’s Response

In its response to the lawsuit, Coinbase argued that it has the right to choose whom to do business with and that no law requires it to allow bad actors or suspected bad actors onto its exchange. The company emphasized that it does not have monopoly power and that its decision to delist wBTC was proper and justified based on a careful review of the risks involved.

Coinbase cited concerns over material changes to wBTC’s stewardship, particularly Justin Sun’s majority control of the Bitcoin reserves, which prompted the exchange to reconsider its support for the asset. The company also noted that the Securities and Exchange Commission has charged Sun and his companies with federal violations, and that the FBI has reportedly opened an inquiry into potential terror financing involving Sun.

Key Points in Coinbase’s Defense

  • Coinbase has the right to choose whom to do business with and is not required to allow bad actors onto its exchange.
  • The company’s decision to delist wBTC was based on a careful review of the risks involved and was necessary to protect its customers.
  • Delisting wBTC would not impact the token’s overall on-chain activity, which largely takes place on other platforms.
  • BiT Global cannot claim harm from being delisted from an exchange where less than 1% of transactions involving wBTC are made.

“We’ve filed our response to BiT Global’s effort to stop our delisting of wBTC before any discovery or even formal response to their bogus claims. We lay out why this lawsuit lacks any semblance of merit and why their request for a TRO should be denied.” – Paul Grewal, Coinbase

Coinbase has urged the court to deny BiT Global’s TRO request and $1 billion relief package, citing the firm’s ties to an allegedly indictable individual and fabricated emergency regarding wBTC.

Stay up-to-date with the latest news and developments in the cryptocurrency space by following Global Crypto News.

Post Views: 0