Connect with us

Hi, what are you looking for?

Coinbase
Coinbase

Cryptocurrency

Coinbase is criticized for delisting WBTC in connection with the alleged risks associated with Justin Sun

The crypto community has expressed dissatisfaction with Coinbase’s decision to delist Wrapped Bitcoin (WBTC), with numerous individuals querying the exchange’s lack of technical or legal justification for the action. BiT Global, a company associated with Justin Sun, has filed a lawsuit in response to the delisting, citing the risks associated with the founder of Tron. Critics contend that Coinbase’s actions are largely predicated on “guilt by association,” rather than any explicit technical or regulatory concerns.

Coinbase has faced criticism for its decision to remove Wrapped Bitcoin (WBTC) from its platform, citing potential dangers associated with Tron founder Justin Sun. BiT Global, a company with connections to Sun, a controversial figure in the cryptocurrency world, has filed a lawsuit in response to the exchange’s November announcement.

The “unacceptable risk” associated with Sun’s alleged financial malfeasance and regulatory violations, according to Coinbase, precipitated the delisting. Nevertheless, critics contend that Coinbase has neglected to offer compelling legal or technical justifications for the removal of WBTC. Some argue that personal animosity toward Sun, rather than genuine concerns about the token’s integrity, motivates the action.

In November, BiT Global filed a lawsuit, accusing Coinbase of undermining WBTC’s market position to promote its own tokenized Bitcoin product, cbBTC. BiT Global contends that the delisting is a direct attack on the project, as it has the potential to disseminate fear and uncertainty about WBTC’s regulatory status.

BiT Global has accused Coinbase of defamation, contending that the exchange unjustly associated its reputation with Sun’s controversies. Accusations of market manipulation and deception have exacerbated Sun’s divisive status in the crypto industry.

Coinbase’s explanation has failed to persuade numerous members of the crypto community, despite the ongoing legal dispute. Pledditor, a Bitcoin enthusiast, conveyed his frustration, asserting that Coinbase’s decision appears to be based on “guilt by association” rather than any concrete evidence regarding WBTC’s technical or legal status.

The controversy underscores broader apprehensions within the crypto community regarding the motivations of key platforms and their impact on market dynamics. The industry will be closely monitoring the case to determine the impact on the reputation of both Wrapped Bitcoin and Coinbase.

author avatar
Sagar Saini
A dedicated freelance blogger with a strong passion for finance and business, With a keen interest in the world of cryptocurrency.
Advertisement

You May Also Like

Cryptocurrency

A court has tentatively lifted the three-month ban on Upbit, the largest digital asset exchange in South Korea, marking a significant development for the...

Cryptocurrency

Amid the financial pressure on many companies to examine Bitcoin, it is estimated that a quarter of the S&P companies will have Bitcoin in...

Uncategorized

Industry experts note that stablecoin regulations and banking access should take priority over cryptocurrency tax reforms in the U.S. Clear laws can encourage mainstream...

Cryptocurrency

Binance has added a new feature that lets users trade directly from CEX to DEX without having to bridge assets or move funds by...

polkadot
Polkadot (DOT) $ 4.03 3.32%
bitcoin
Bitcoin (BTC) $ 82,199.02 5.09%
ethereum
Ethereum (ETH) $ 1,790.75 5.91%
cardano
Cardano (ADA) $ 0.638131 7.18%
xrp
XRP (XRP) $ 2.05 4.74%
stellar
Stellar (XLM) $ 0.257467 5.21%
litecoin
Litecoin (LTC) $ 82.30 4.66%