As a seasoned researcher with years of experience observing the dynamic world of cryptocurrencies and blockchain technology, I find myself intrigued by this latest development between Coinbase and BiT Global, particularly regarding the Wrapped Bitcoin (WBTC) delisting controversy.
Coinbase has issued a rebuttal to a lawsuit by BiT Global, a Justin Sun-affiliated entity, challenging the exchange’s decision to delist Wrapped Bitcoin (WBTC).
Paul Grewal, holding the position of Chief Legal Officer at the firm, disclosed the filing on X, stating that his company had already presented a counteraction against BiT Global’s attempt to prevent the delisting of WBTC. He characterized their claims as baseless.
Coinbases’ Defence
In the submission by Grewal, Coinbase explained their stance, claiming that BiT Global didn’t make clear its ownership arrangement or address issues concerning Justin Sun, the founder of TRON, potentially having an impact on the project. The exchange asserted that such influence could pose substantial risks to both customers and the platform’s credibility.
The document indicates that BiT is attempting to make Coinbase work with a non-compliant entity, as Mr. Sun’s significant influence is the reason for this entity no longer meeting Coinbase’s criteria.
The document additionally pointed out that BiT Global postponed the submission of their lawsuit and request for a temporary restraining order by almost a month. This delay potentially weakens their assertions about immediate damage.
In response to claims about potential financial and brand harm, the San Francisco exchange stated that these allegations are merely speculative since WBTC represents less than 1% of their total transaction volume. They further contended that any decrease in trust towards the product is not due to its removal from their platform, but rather stemming from its connection with Sun, not the decision to delist it.
In summary, the crypto platform argued that its actions were a legitimate use of business discretion to safeguard itself and its clients, drawing upon relevant court decisions that uphold tech companies’ authority to establish their own standards. Furthermore, it dismissed BiT Global’s legal allegations as groundless and requested the court to reject their application for emergency relief.
Backlash and Concerns Over Sun’s Involvement
In November, Coinbase stated they would remove WB Wrapped Bitcoin from their platform on December 19, citing concerns about its connection to Sun as the reason. This action sparked significant criticism, with many within the crypto community claiming that the company was being biased towards their own tokenized version of Bitcoin, cbBTC.
In response, BiT Global took legal action on December 13, claiming that the exchange had been acting in an anticompetitive manner, employing aggressive strategies to weaken WBTC’s dominance, and disseminating misleading information about the token’s adherence to listing guidelines.
In response, the creator of TRON voiced his critique towards the competitor’s product. He argued that it lacked proof-of-reserve, had not undergone an audit, and potentially enabled the exchange to restrict user balances. This, he suggested, could expose decentralized finance (DeFi) to security concerns.
Coinbase defended itself against Sun’s claims by highlighting his past accusations of financial wrongdoing. Specifically, they mentioned instances of alleged fraud, market manipulation, and legal action taken by the U.S. Securities and Exchange Commission (SEC), as well as ongoing investigations by multiple law enforcement agencies. The 34-year-old is facing these allegations.
Read More
- SUI PREDICTION. SUI cryptocurrency
- „People who loved Dishonored and Prey are going to feel very at home.” Arkane veteran sparks appetite for new, untitled RPG
- LDO PREDICTION. LDO cryptocurrency
- Destiny 2: A Closer Look at the Proposed In-Game Mailbox System
- Clash Royale Deck Discussion: Strategies and Sentiments from the Community
- Jennifer Love Hewitt Made a Christmas Movie to Help Process Her Grief
- ICP PREDICTION. ICP cryptocurrency
- Naughty Dog’s Intergalactic Was Inspired By Akira And Cowboy Bebop
- Critics Share Concerns Over Suicide Squad’s DLC Choices: Joker, Lawless, and Mrs. Freeze
- EUR IDR PREDICTION
2024-12-18 19:08