Coinbase is shaking things up in the crypto world with a bold move to delist Wrapped Bitcoin (WBTC), and the drama is heating up! The exchange is taking a stand, citing concerns over BiT Global’s mysterious ownership structure and the involvement of the ever-controversial Justin Sun, founder of TRON.
In a fiery response to a lawsuit from BiT Global, Coinbase isn’t holding back. Their Chief Legal Officer, Paul Grewal, took to social media to spill the beans on why they’re not backing down. He called the lawsuit a sham and outlined the company’s stance in a detailed filing.
Coinbase is standing firm, saying that BiT Global has been dodging questions about who’s really pulling the strings behind the scenes. And with Justin Sun’s name in the mix, they’re not willing to take any chances. The exchange fears that his influence could spell trouble for their users and the platform’s overall integrity.
According to the document, Coinbase refuses to be strong-armed into doing business with an entity that doesn’t meet its standards, especially with Sun’s “material involvement.” To add to the drama, BiT Global took its sweet time before filing the lawsuit and asking for a temporary restraining order. So, Coinbase argues, how urgent could the harm really be?
The San Francisco-based exchange is also brushing off claims of financial and reputational damage, labeling them as pure speculation. After all, WBTC only accounts for a sliver of their transaction volume. They contend that any loss of faith in WBTC is more about Sun’s reputation than their decision to delist.
Coinbase insists they’re just doing what any smart business would – protecting their turf and their customers. They’ve got court precedents backing them up, emphasizing their right to set their own standards. As for BiT Global’s legal accusations? Coinbase is waving them off as groundless and urging the court to do the same.
Back in November, Coinbase decided to cut ties with WBTC by December 19, pointing fingers at its ties to Sun. This move sparked an outcry in the crypto community, with accusations flying that Coinbase is just trying to boost its own tokenized Bitcoin, cbBTC.
BiT Global hit back with a lawsuit just days before the delisting, accusing Coinbase of monopolistic maneuvers and spreading false info about WBTC. Justin Sun also chimed in, criticizing Coinbase’s offering for lacking proof-of-reserve and posing potential risks to decentralized finance (DeFi).
But Coinbase isn’t letting Sun off the hook easily. They’ve highlighted his checkered past, including allegations of financial misconduct and market manipulation. Plus, they mention that he’s been sued by the U.S. Securities and Exchange Commission (SEC) and is under the watchful eye of law enforcement.
The battle lines are drawn, and it looks like this crypto clash is far from over! Stay tuned for more twists and turns in this electrifying saga.
