The delisting of WBTC was a necessary step to protect Coinbase and users from the risks of the project’s association with Tron founder Justin Sun. About this on December 17 stated stock exchange lawyers.
According to the platform’s latest arguments, the problem lies with the token’s connection to Sun. According to lawyers, Coinbase did not receive enough information about the role and influence of the entrepreneur in BiT Global.
They explained that this was a potential threat to the exchange’s clients, so the asset was subject to delisting due to non-compliance with security standards.
On August 9, Sun-controlled BiT Global became a custodian of WBTC reserves along with BitGo. The partnership has raised concerns in the community. Experts noted that companies associated with Sun faced transparency issues. The founder of Tron then assured that WBTC would remain unchanged, and he himself did not have direct access to the funds.
In addition, March 22, 2023 SEC accused Sun and his three companies, Tron Foundation, BitTorrent Foundation and Rainberry (formerly BitTorrent), of making an unregistered securities offering.
On November 19, 2024, Coinbase announced the delisting of WBTC, citing the asset’s non-compliance with platform standards, without providing further details.
December 13 BiT Global filed lawsuit against the exchange. The platform was accused of unfairly delisting in order to promote its own cbBTC token. BiT Global said this resulted in financial and reputational damage to the project.
According to Coinbase lawyers, BiT Global’s claims of financial losses are unfounded – the platform accounted for less than 1% of global WBTC trading volume. They also deny reputational damage.
The community criticized Coinbase’s position. According to some commentators, the exchange did not provide clear enough arguments for delisting and is interested in promoting its asset.
I’m no Justin Sun fan, I think he’s a grifter
But they fail to articulate why wBTC deserves to be delisted. To me, it’s clear their explanation is bullshit, and the real reason they delisted wBTC was to eliminate competition to cbBTC https://t.co/0wQXeALPLP
— Pledditor (@Pledditor) December 17, 2024
According to others, the exchange voiced a completely valid reason.
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Source: Cryptocurrency
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