Coinbase Global, Inc. has filed its response to BiT Global’s emergency motion for a temporary restraining order (TRO) in an ongoing dispute regarding the planned delisting of wrapped Bitcoin (wBTC) from Coinbase’s trading platform. The crypto exchange argues that BiT’s lawsuit “lacks any semblance of merit” and fails to justify halting the exchange’s decision.
Coinbase’s Response Against BiT Global
Coinbase publicly announced the suspension of wBTC trading on November 19, 2024, citing concerns over the asset’s integrity following BitGo’s joint venture with BiT Global and Justin Sun. According to the latest filing, the partnership triggered a compliance review that concluded wBTC no longer met its listing standards due to “unacceptable risk to its customers and the integrity of its exchange.”
In its filing, the exchange highlighted its rigorous listing standards, which aim to ensure the safety and trustworthiness of assets available on its platform. “The trust Coinbase has expended immeasurable effort earning will be degraded and its reputation will be put at serious risk” if forced to list assets that present risks to customers, the response states.
The heart of Coinbase’s opposition is its refusal to associate with Justin Sun, a controversial figure in the crypto community. Sun has been accused of fraud and market manipulation by the U.S. Securities and Exchange Commission (SEC) and is reportedly under investigation for criminal wrongdoing.
Justin Sun’s Alleged Involvement Spotlighted
The filing notes that the “announcement of Sun’s involvement in wBTC created ‘panic’ and ‘FUD’ (fear, uncertainty, doubt)” within the crypto community. It further asserts, “BiT’s evasiveness exacerbated doubts about its assertion that Mr. Sun ‘is not involved in the shareholding structure’ of BiT”.
Coinbase also dismantled BiT’s claims of irreparable harm, emphasizing that the exchange handles less than 1% of wBTC trading volume globally. “BiT’s imagined losses are speculative to boot. It never explains how delisting wBTC from a single exchange…could wreak irreparable harm,” the crypto platform stated.
The company also pointed out that wBTC holders can still trade the asset on other platforms, including Binance and Uniswap, and that Coinbase Wallet allows users to store and trade wBTC independently. Responding to BiT’s allegations of trade libel, the exchange defended its statements as accurate and rooted in its evaluation process.
“The statements at issue—that wBTC does not meet Coinbase’s listing standards and that Coinbase intends to suspend trading of the asset—are true. BiT does not and cannot credibly argue otherwise,” the filing reads.
The company further warned of broader implications if BiT’s motion were granted, arguing that it could undermine investor confidence in crypto exchanges. “Judicial intervention on behalf of one jilted token offeror would jeopardize investor confidence across this growing sector,” the exchange stated.
Coinbase has urged the court to deny BiT’s request for a TRO, stating that BiT’s delay in filing the lawsuit undercuts any claims of urgency. “BiT did nothing for weeks…manufacturing an ‘emergency’ and asking this Court to force Coinbase to grant wBTC ‘unabated’ access to its exchange,” the filing concludes.
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