Coinbase Faces Criticism For Linking wBTC Delisting To Justin Sun
The post Coinbase Faces Criticism For Linking wBTC Delisting To Justin Sun appeared first on Coinpedia Fintech News
Coinbase is under fire for delisting wBTC, citing risks linked to Justin Sun without providing technical justification. Critics note the irony, as Coinbase itself faces numerous regulatory investigations. On December 17, Coinbase filed a response to a lawsuit from BiT Global, which accused the exchange of harming the wrapped Bitcoin (WBTC) market by delisting the token from its platform in November.
Coinbase Quotes Unacceptable Risk
The crypto community as it is lashing out against Coinbases reasoning for delisting Wrapped Bitcoin (WBTC) after the exchange linked the decision to the unacceptable risk associated with Tron founder Justin Sun.
Coinbase referenced concerns about Sun in its filing, citing allegations of financial misconduct and ongoing regulatory investigations as reasons for the delisting. The exchange doubted BiT Globals credibility, highlighting the firms linkage to Sun.
At the conclusion of its diligence, Coinbase concluded that Mr. Suns affiliation withand potential control overwBTC presented an unacceptable risk to its customers and the integrity of its exchange, the filing said. The explanation sparked sharp criticism within the crypto community, with many questioning the sufficiency of Coinbases legal and technical justification for the move.
Bit Global Says Delisting Was Illegal
BiT Global, in its lawsuit filed on December 13, argues that the delisting was illegal and would irreparably damage WBTCs economics. The lawsuit also criticized Coinbase for listing other tokens, including meme coins, which BiT Global claims are less relevant than WBTC.
BiT argued that COINs launch of its own tokenized Bitcoin product, cbBTC, breaches antitrust laws and could lead to a monopoly in the tokenized Bitcoin market, that could stifle competition.
The exchange contended that its internal process led to the decision to delist WBTC due to concerns that its connection with Sun could harm the platforms security and customer trust.
Critics Note The Irony
Bitcoin enthusiasts and critics of the exchange, such as the notable figure Pledditor, have rebuked the exchanges actions, accusing it of relying on a weak rationale to delist WBTC.
While Coinbase gave their reason in a court filing today as to why they delisted wBTC, Pledditor noted that its basically just they dont like Justin Sun. They dont give any technical or legal arguments about why wBTC cant be listed. Its just guilt by association, he added.
Critics have noted the irony as the crypto exchanges justification also faces scrutiny due to its own legal challenges. Sun, who has been the target of multiple regulatory investigations, is facing charges from the U.S. SEC for alleged violations, including fraud.
Furthermore, VanEck adviser Gabor Gurbacs highlighted the irony that Coinbase is treating Justin Sun this way. Coinbase itself is under SEC and numerous other investigations, probably many more than Justin and his businesses. Questioning someones reputation this way might just bring out skeletons from their own closet, he remarked.
Coinbase is facing charges from the SEC, including a lawsuit filed in June 2023, accusing the exchange of offering unregistered securities through tokens listed on its platform. Additionally, in January 2023, Coinbase settled with the New York Department of Financial Services for $100 million over concerns about its compliance program.
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Text source: Coinpedia – Fintech & Cryptocurreny News Media| Cr
