Catenaa, Saturday, December 21, 2024 – A California federal court has ruled in favor of Coinbase, allowing the major cryptocurrency exchange to delist wrapped bitcoin (wBTC) despite efforts by Hong Kong-based BiT Global to block the decision through a temporary restraining order.
US District Judge Araceli Martínez-Olguín determined there was no valid reason to prevent Coinbase from removing wBTC, a tokenized bitcoin product, which the platform announced last month would be delisted on Dec. 19. BiT Global, which has ties to controversial crypto figure Justin Sun, argued that the move would cause irreparable harm and violate competition laws.
Coinbase defended its decision, citing its rights as a private company and pointing to Sun’s alleged history of financial misconduct. The exchange also emphasized that its platform accounts for less than 1% of wBTC trading activity, disputing claims of monopolistic behavior.
BiT Global’s lawsuit also alleged libel, accusing Coinbase of damaging its reputation and wBTC’s viability while promoting its rival product, Coinbase Wrapped Bitcoin (cbBTC). However, Coinbase representatives labeled the claims “spurious” and indicated they might seek sanctions against the plaintiffs.
Judge Martínez-Olguín appeared skeptical of BiT Global’s arguments, with Coinbase asserting that no evidence showed its decision impacted the company’s customer base.
The ruling underscores the growing tensions in the cryptocurrency sector as platforms navigate regulatory and market pressures while managing their token listings.
