- A US federal choose has allowed Coinbase to delist WBTC regardless of BiT Global’s objections.
- Judge Martínez-Olguín denied BiT Global’s TRO, citing lack of proof of hurt.
- Despite the delisting and Coinbase launching cbBTC, WBTC dominates the wrapped digital belongings market with an 85% share.
In a pivotal authorized determination, a California federal choose has dominated in favour of cryptocurrency change Coinbase, permitting it to proceed with the deliberate delisting of Wrapped Bitcoin (WBTC).
The ruling, delivered by Judge Araceli Martínez-Olguín of the US District Court for the Northern District of California, got here after a contentious authorized battle initiated by BiT Global, a digital asset custodian partly owned by Tron founder Justin Sun.
The BiT Global lawsuit towards Coinbase for WBTC delisting
The dispute started in November 2024 when Coinbase announced its intention to delist WBTC, citing considerations over its affiliation with Justin Sun.
Sun, a controversial determine in the crypto house, has confronted allegations of fraud and market manipulation.
BiT Global responded by filing a $1 billion lawsuit towards Coinbase on antitrust grounds, in search of a short lived restraining order (TRO) to halt the delisting. The agency argued that the transfer would destabilize WBTC’s market and trigger substantial monetary hurt to buyers.
Temporary restraining order (TRO) declined
During a digital listening to on December 18, Judge Martínez-Olguín denied BiT Global’s request for a TRO, ruling that the firm failed to present adequate proof of imminent and irreparable hurt. She famous that BiT Global’s delay in submitting the lawsuit after Coinbase’s preliminary announcement weakened its case.
In its defence, Coinbase pointed to BiT Global’s refusal to disclose possession particulars and considerations about Sun’s affect over the token’s integrity.
While the court docket left open the risk for BiT Global to current stronger proof in the future, the determination successfully cleared the path for Coinbase to delist WBTC as deliberate on December 19.
Notably, WBTC’s delisting comes amid Coinbase’s current launch of its personal wrapped bitcoin token, cbBTC, elevating questions on aggressive motives.
Despite the controversy, WBTC continues to dominate the wrapped bitcoin market, holding 85% of the Ethereum community’s market share.
