Court Ruling Allows Coinbase to Delist wBTC

• **Coinbase proceeds with delisting of wBTC citing associated risks.**
• **BiT Global has not proven irreparable harm in legal action.**
• **Decision highlights the importance of transparency and governance in the crypto market.**

A major US court ruling has ruled in Coinbase's favor in the dispute against BiT Global Digital Ltd., allowing the exchange to proceed with the delisting of the wrapped Bitcoin (wBTC) token from its platform. In a virtual hearing held on December 18, Judge Araceli Martínez-Olguín denied BiT Global’s request for a temporary restraining order (TRO). The judge found that the company failed to demonstrate “imminent irreparable harm,” a key criterion for granting the injunction.

BiT Global, which manages wBTC, claimed that Coinbase's decision would cause significant damage to the token's market. however , the judge criticized the speculative nature of the allegations and noted that BiT Global’s delay in responding to the delisting notice, announced in November, damaged its credibility. The ruling represents a significant defeat for the company, which also faces challenges related to its association with Justin Sun, founder of Tron.

Since 2020, Coinbase has supported wBTC, a token that allows Bitcoin’s value to be used in decentralized finance (DeFi) applications. However, the exchange justified its decision to delist the token based on concerns related to the involvement of Justin Sun, who faces charges of fraud and securities violations by the U.S. Securities and Exchange Commission (SEC).

According to court documents filed, Coinbase claimed that Sun’s control of wBTC posed an “unacceptable risk” to the integrity of the platform and its users. The company also pointed to BiT Global’s lack of transparency regarding the token’s ownership structure and Sun’s role in the project. According to Paul Grewal, Coinbase’s chief legal officer, the court ruling reflects the exchange’s commitment to protecting its customers.

“BiT Global has lost. Today, we were asked by the court to force us to stop delisting wBTC to protect our customers. Today, the court said no. We appreciate the court’s consideration and the exceptional advocacy by Sonal Mehta and her team at WilmerHale,” Grewal wrote in a statement.

wBTC is a token that replicates the value of Bitcoin and allows it to be used on networks like Ethereum. Despite representing more than $13 billion in Bitcoin value, Coinbase's decision to delist the asset raises questions about the transparency and governance of tokens linked to controversial figures like Justin Sun.

BiT Global accused Coinbase of attempting to monopolize the exchange and claimed that the delisting significantly harms the wBTC market. However, the court found that any losses could be compensated financially, ruling out the possibility of irreparable harm.

The ruling also highlighted that wBTC circulation began to decline even before the delisting announcement, which Coinbase attributed to Justin Sun’s involvement in the project. On the other hand, BiT Global’s lawyers claimed that Sun was merely a pretext to justify the delisting of the token.

BiT Global can still pursue further legal action to try to overturn the ruling, while Coinbase has 30 days to file a motion to dismiss the monopolization claims in the broader lawsuit. The ruling reinforces the right of exchanges to determine which assets meet compliance and security standards to be listed on their platforms.

Meanwhile, the crypto market continues to closely monitor moves involving controversial tokens and their managers, with a growing focus on the transparency and reliability of digitized assets.