California Judge Rules in Favor of Coinbase, Allowing It to Delist Wrapped Bitcoin (WBTC)

The ruling comes after a contentious legal battle initiated by BiT Global, a digital asset custodian partly owned by Tron founder Justin Sun.

A California federal judge has ruled in favour of cryptocurrency exchange Coinbase in a legal battle over the planned delisting of Wrapped Bitcoin (WBTC) from its platform.

The decision comes after a contentious legal dispute with BiT Global, a digital asset custodian partly owned by Tron founder Justin Sun, over the exchange’s move to delist WBTC.

Coinbase announced its intention to delist WBTC in November 2024, citing concerns over its association with Sun, who has faced allegations of fraud and market manipulation in the crypto space.

In response, BiT Global filed a $1 billion lawsuit against Coinbase on antitrust grounds, seeking a temporary restraining order (TRO) to halt the delisting.

The company claimed that the move would destabilize WBTC’s market and cause substantial financial harm to investors.

However, during a virtual hearing on December 18, Judge Araceli Martínez-Olguín of the US District Court for the Northern District of California declined BiT Global’s request for a TRO.

The judge ruled that the company failed to provide sufficient evidence of imminent and irreparable harm, particularly given the delay in filing the lawsuit after Coinbase’s initial announcement.

In its defence, Coinbase highlighted BiT Global’s refusal to disclose ownership details and expressed concerns about Sun’s influence over the token’s integrity.

The court left open the possibility for BiT Global to present stronger evidence in the future, but the decision effectively cleared the path for Coinbase to delist WBTC as planned on December 19.

It is worth noting that WBTC’s delisting coincides with Coinbase’s recent launch of its own wrapped bitcoin token, cbBTC, leading to speculation about competitive motives.

Despite the controversy, WBTC maintains a dominant position in the wrapped bitcoin market, accounting for 85% of the Ethereum network’s market share.