wBTC Delisting Stands: BiT Global’s Legal Challenge Fails
2024-12-20
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A federal judge in California has denied BiT Global Digital Ltd.’s request for a temporary restraining order (TRO) to prevent crypto exchange Coinbase from delisting wrapped Bitcoin (wBTC) from its platform.
US District Judge Araceli Martínez-Olguín ruled Wednesday that BiT Global failed to present sufficient evidence to demonstrate “imminent irreparable harm” if the delisting proceeds.Coinbase Cleared to Delist wBTC
The judge also criticized the speculative nature of BiT Global’s claims and noted the company’s delay in filing the complaint following Coinbase’s delistingannouncement. The ruling was a setback for BiT Global, which manages wBTC – a token pegged to Bitcoin’s value that facilitates decentralized finance (DeFi) activities on blockchain networks like Ethereum.
Coinbase, which has supported wBTC trading since 2020, argued that its decision to delist the token was driven by concerns over its ties to Justin Sun, the founder of the Tron cryptocurrency.
Sun was charged with fraud and securities violations by the US Securities and Exchange Commission (SEC) in March 2023. In its legalfiling, Coinbase stated that the association with Sun posed an “unacceptable risk,” a claim BiT Global did not address in its complaint or TRO request.BiT Global ‘Lost’ its Bid to Halt wBTC Delisting
Paul Grewal, Coinbase’s chief legal officer, welcomed the court’s decision, stating on X that BiT Global “lost” its bid to prevent the delisting.
“BiT Global lost. Today they asked the Court to order us to stop delisting wBTC to protect our customers. Today the Court said no. We appreciate the Court’s consideration and the outstanding advocacy of Sonal Mehta and her team at WilmerHale.”
The exchange was represented by Sonal N. Mehta and her team at WilmerHale, who argued that Coinbase’s actions were necessary to protect its customers. As such, the latest decision allows Coinbase to proceed with delisting wBTC, a token reportedly linked to more than $13 billion in Bitcoin value.
Looking ahead, the crypto exchange has approximately 30 days to file a motion to dismiss the broader claims in BiT Global’s lawsuit, which include allegations of “attempted monopolization” under the Sherman Act.