BiT Global’s Lawsuit against Coinbase over WBTC Delisting Denied

As a seasoned analyst with over two decades of experience navigating the complex landscape of financial markets and digital assets, I find myself deeply intrigued by the ongoing saga between Coinbase, BiT Global, and Justin Sun.

Judge Araceli Martinez-Olguin has rejected BiT Global’s request for a temporary restraining order against Coinbase over the removal of Wrapped Bitcoin (WBTC) from its platform. 

In simpler terms, BiT Global, under the guidance of Justin Sun, initiated a lawsuit that was ultimately dismissed. The crux of the lawsuit was that Coinbase had tarnished BiT Global’s reputation and favored its own version of Bitcoin token, Wrapped Bitcoin on Coinbase (cbBTC), at the expense of fair competition. Essentially, BiT Global was seeking a court order to compel Coinbase to reinstate WBTC on their platform.

Following Sun’s public criticism of Coinbase for not completing a proof-of-reserves process, this lawsuit arises. Interestingly, Sun’s own Poloniex platform hasn’t carried out this procedure either. Instead, it provides a more extensive tokenized Bitcoin product without revealing its backing collateral.

Coinbase explained that they perceived the potential for Justin Sun to gain control over wBTC as too risky. Additionally, they mentioned that BiT Global declined to provide information about who ultimately owns the company.

Meanwhile, it’s worth noting that Sun’s HTX platform recently cashed out more than 7,000 Wrapped Bitcoins (WBTC), yet failed to disclose this in its reserve proof. This move in the digital Bitcoin market has sparked a lot of curiosity and speculation about Sun’s role and intentions.

To further complicate matters, World Liberty Financial – a company that Justin Sun advises and has the endorsement of Donald Trump – appears to be purchasing WBTC. It seems they are swapping approximately 100 BTC‘s worth of cbBTC for WBTC.

The actions taken by Sun in the digital Bitcoin market have sparked a lot of curiosity regarding his level of influence and reasons behind them.

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2024-12-21 00:04