- Court denies BiT Global’s request for temporary restraining order against Coinbase over WBTC delisting.
- Coinbase cites concerns over Justin Sun‘s potential control of WBTC as reason for delisting.
- HTX redeemed 7,000 WBTC not included in proof-of-reserves despite showing zero trading volume.
- World Liberty Financial converts approximately 100 BTC worth of cbBTC to WBTC.
- BiT Global’s lawsuit claims Coinbase engaged in monopolistic behavior to promote its cbBTC product.
Federal Judge Araceli Martinez-Olguin has ruled against BiT Global’s motion for a temporary restraining order that would have forced Coinbase to maintain Wrapped Bitcoin (WBTC) listings on its platform. The decision marks a significant setback for the Justin Sun-advised custody provider in its legal battle against the cryptocurrency exchange.
Custody Control Concerns
Coinbase’s defense centered on risk management, highlighting "unacceptable risk that control of wBTC would fall into the hands of Justin Sun." The exchange raised questions about BiT Global’s ownership structure, stating the company "refused to answer" inquiries about its ultimate beneficiaries.
The lawsuit originated after Coinbase’s decision to delist WBTC, with BiT Global alleging:
- Damage to their reputation
- Anti-competitive practices favoring Coinbase’s cbBTC
- Market manipulation
Market Activity Raises Questions
Recent market movements have intensified scrutiny of Sun-affiliated entities:
- HTX (formerly Huobi) redeemed over 7,000 WBTC previously undisclosed in proof-of-reserves
- World Liberty Financial, endorsed by Donald Trump and advised by Sun, has been actively converting cbBTC to WBTC
- Poloniex, owned by Sun, operates a larger tokenized bitcoin product without transparent collateral disclosure
These developments occur amid Sun’s public criticism of Coinbase’s proof-of-reserves process, despite his own platforms lacking similar transparency measures. The pattern of activities across Sun-affiliated platforms has raised questions about the strategic positioning within the tokenized Bitcoin market sector.
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