Coinbase Explains WBTC Delisting Due to Doubts About Justin Sun's Honesty
Date: 2024-12-19 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
Coinbase's legal team stated on December 17 that the decision to delist the token was made to protect the interests of users and ensure the security of the platform. The main reason is the lack of information about the extent of Justin Sun's involvement in the activities of BiT Global, which in August 2024 became one of the custodians of WBTC reserves along with BitGo.
The cooperation between BiT Global and BitGo has raised questions in the crypto community, as projects associated with Sun have been repeatedly criticized for their lack of transparency. Despite the assurances of the entrepreneur himself that he does not have direct access to funds, trust in the project has been undermined.
Coinbase first announced plans to delist WBTC on November 19, 2024, citing the token’s non-compliance with the platform’s standards. No details were provided at the time, which sparked a flurry of criticism.
Soon after, on December 13, BiT Global filed a lawsuit against Coinbase, accusing the exchange of an unfair decision, the purpose of which was allegedly to promote its own cbBTC token. The lawsuit claimed that the delisting resulted in significant financial and reputational losses for WBTC.
Coinbase’s lawyers responded by stating that WBTC’s share of the platform’s total trading volume was less than 1%, and that BiT Global’s claims of reputational and financial losses were unfounded.
Critics consider Coinbase’s actions questionable. Some users accuse the exchange of insufficient argumentation and suggest that the main reason for the delisting was the desire to eliminate competition.
“I am not a fan of Justin Sun and consider him a scammer. But Coinbase failed to explain why WBTC should be delisted. It is obvious that their arguments are far-fetched, and the real goal is to promote cbBTC,” wrote one user X.
Others, on the contrary, consider Coinbase’s position to be reasonable, pointing out that trust in the management and the team’s reputation is a key factor in the success of wrapped bitcoins.
