Coinbase sued over WBTC delisting by Justin Sun-affiliated BiT Global
Justin Sun-affiliated BiT Global has filed a lawsuit in the Northern District of California against Coinbase that alleges a variety of infractions centered around the exchange’s decision to delist Wrapped Bitcoin (WBTC).
When Coinbase decided to delist WBTC, it claimed that as of its “most recent review,” WBTC no longer met its listing requirements.
This led Sun to launch a series of hypocritical complaints at the exchange, including implying that Sun-owned Poloniex has deep issues that prevent it from completing a proof-of-reserves process.
Read more: Justin Sun reveals Poloniex issues prevent proof of reserves
BiT Global’s lawsuit claims that it risks suffering losses of “more than $1 billion in its market valuation” due to the assaults on its reputation from Coinbase. Furthermore, it tries to claim that Coinbase is motivated by a desire to monopolize the tokenized BTC space with its token, cbBTC.
It’s important to note that recently, Sun-advised HTX has been the largest redeemer of WBTC and the market capitalization of WBTC has grown more than its competitors. One of the HTX redemptions is even described in the lawsuit as evidence that Coinbase had hurt BiT Global, which is strange considering Sun advises both BiT Global and HTX.
The lawsuit also attempts to use Coinbase’s other listing decisions, including PEPE and DOGWIFHAT, to claim that “Coinbase has virtually no standards for what can be listed.”
Strangely, the lawsuit claims that “bitcoin’s design was locked into place,” despite the Taproot soft fork that extended bitcoin’s functionality after the 2018 period described in the lawsuit.
The lawsuit hopes to force Coinbase to once again list WBTC, as well as pay damages based on the hypothetical harm to BiT Global’s market valuation.
A Coinbase spokesperson told Protos, “Coinbase is committed to maintaining the high integrity of our listing standards, and we regularly evaluate assets listed on our platform. Should an asset fail to meet those standards, it is delisted.”
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