- 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 pivotal legal decision, a California federal judge has ruled in favour of cryptocurrency exchange Coinbase, allowing it to proceed with the planned delisting of Wrapped Bitcoin (WBTC).
The ruling, delivered by Judge Araceli Martínez-Olguín of the US District Court for the Northern District of California, came after a contentious legal battle initiated by BiT Global, a digital asset custodian partly owned by Tron founder Justin Sun.
The BiT Global lawsuit against Coinbase for WBTC delisting
The dispute began in November 2024 when Coinbase announced its intention to delist WBTC, citing concerns over its association with Justin Sun.
Sun, a controversial figure in the crypto space, has faced allegations of fraud and market manipulation.
BiT Global responded by filing a $1 billion lawsuit against Coinbase on antitrust grounds, seeking a temporary restraining order (TRO) to halt the delisting. The firm argued that the move would destabilize WBTC’s market and cause substantial financial harm to investors.
Temporary restraining order (TRO) declined
During a virtual hearing on December 18, Judge Martínez-Olguín denied BiT Global’s request for a TRO, ruling that the company failed to provide sufficient evidence of imminent and irreparable harm. She noted that BiT Global’s delay in filing the lawsuit after Coinbase’s initial announcement weakened its case.
In its defence, Coinbase pointed to BiT Global’s refusal to disclose ownership details and concerns about Sun’s influence over the token’s integrity.
While the court left open the possibility for BiT Global to present stronger evidence in the future, the decision effectively cleared the path for Coinbase to delist WBTC as planned on December 19.
Notably, WBTC’s delisting comes amid Coinbase’s recent launch of its own wrapped bitcoin token, cbBTC, raising questions about competitive motives.
Despite the controversy, WBTC continues to dominate the wrapped bitcoin market, holding 85% of the Ethereum network’s market share.
