BiT Global Loses wBTC Lawsuit Vs Coinbase: Judge Upholds December 19 Delisting
- Judge rules BiT Global failed to prove imminent harm from delisting.
- Coinbase cites concerns over Justin Suns involvement with wBTC.
- BiT Globals delayed lawsuit weakens its case against Coinbases decision.
A U.S. federal judge ruled in favor of Coinbase in its legal dispute with BiT Global over the delisting of Wrapped Bitcoin (wBTC). The court found BiT Globals claims of harm lacked sufficient evidence, allowing the delisting to proceed as planned.
Judge Rules Against BiT Global in Coinbase wBTC Delisting Dispute
On December 18, 2024, a U.S federal court judge ruled in favor of Coinbase in its legal dispute with BiT Global over the delisting of Wrapped Bitcoin (wBTC). BiT Global had requested a temporary restraining order (TRO) to prevent the delisting process which was scheduled for December 19.
However, the judge found that BiT Globals claims lacked sufficient evidence to stop the delisting. The judge ruled that the BiT Global failed to prove any imminent or potential harm.
The judge dismissed BiT Globals complaint which had been filed only five days before on December 13, 2024. BiT Global argued that delisting of wBTC from Coinbase would cause major financial damage to token holders and disrupt the wider market. However, the judge said that BiT Global failed to provide credible evidence of imminent damages, thus allowing Coinbase to proceed with the delisting as scheduled.
BiT Global Fails to Prove Imminent Harm in Its Case Against Coinbase
In its attempt to stop the delisting, BiT Global stated that the delisting of wBTC would lead to major financial losses for token holders and harm the token ecosystem. The company claimed that Coinbases decision was unjustified, especially because the exchange had not explained the specific risks associated with listing wBTC.
BiT Global believed the delisting was an overreaction and sought legal intervention to prevent the potential damage.
However, the judge dismissed BiT Globals claims as speculative and lacked enough evidence. Another issue was the timing of the lawsuit. BiT Global filed the case a few days before the scheduled delisting which weakened its argument.
The judge stated that if the harm was truly imminent, the company would have filed teh lawsuit earlier, thus it further weakened the credibility of the claims.
Coinbase Cites Concerns Over Justin Suns Involvement in wBTC Control
Coinbase decided to delist wBTC because of its control and association with Justin Sun, who has a controversial reputation in the crypto space.
On November 19, 2024, Coinbase announced its plan to suspend wBTC trading due to concerns that Sun may have control over it through BiT Global. Suns previous legal issues with U.S authorities raised further concerns about possible regulatory risks connected with the tokens association.
Despite BiT Globals claims that the delisting was unjustified, Coinbase argued that it was protecting its users and the market. The exchange emphasized that its risk assessment and decision-making process were based on integrity and security of the assets listed on its platform.
This case shows the tension in the crypto space on the control of key tokens and regulatory challenges that exchanges face in ensuring compliance.
Read more: https://www.tronweekly.com/bit-global-lose-wbtc-delisting-suit-vs-coinbase/
Text source: TronWeekly
