US Federal Judge Allows Coinbase to Delist WBTC
- A US federal judge has allowed Coinbase to delist WBTC despite BiT Global’s objections.
- Judge Martínez-Olguín denied BiT Global’s TRO, citing lack of evidence of harm.
- Despite the delisting and Coinbase launching cbBTC, WBTC dominates the wrapped digital assets market with an 85% share.
In a significant legal development, a California federal judge has ruled in favour of cryptocurrency exchange Coinbase, granting permission to proceed with the planned delisting of Wrapped Bitcoin (WBTC).
The Legal Battle Over WBTC Delisting
The conflict arose in November 2024 when Coinbase announced its decision to delist WBTC, expressing concerns about its association with Justin Sun.
Sun, a controversial figure in the cryptocurrency industry, has been accused of fraud and market manipulation.
BiT Global, a digital asset custodian partly owned by Justin Sun, responded by filing a $1 billion lawsuit against Coinbase on antitrust grounds. They sought a temporary restraining order (TRO) to stop the delisting, arguing that it would harm WBTC’s market and investors financially.
Denial of Temporary Restraining Order (TRO)
At a virtual hearing on December 18, Judge Martínez-Olguín rejected BiT Global’s request for a TRO, stating that the company did not provide enough evidence of immediate and irreversible damage. The judge pointed out that BiT Global’s delay in filing the lawsuit weakened their case.
In its defense, Coinbase highlighted BiT Global’s refusal to disclose ownership details and concerns about Justin Sun’s influence on the token’s integrity.
Although the court left room for BiT Global to present stronger evidence in the future, the ruling allowed Coinbase to proceed with the delisting of WBTC on December 19.
Despite the controversy surrounding the delisting, WBTC maintains its dominance in the wrapped bitcoin market, capturing 85% of the Ethereum network’s market share.
