WBTC Delisting Debate: Coinbase Faces Backlash Over Justin Sun Link

The exchange cited its concerns about Tron TRX $0.2296 founder Justin Sun as the reason for the delisting, but many feel the explanation lacks solid justification.

On December 17, Coinbase responded to a lawsuit from BiT Global, a company tied to Sun. The lawsuit charged Coinbase with damaging the WBTC market by removing the token from trading.

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The exchange pointed to Sun’s alleged involvement in financial misconduct and ongoing regulatory scrutiny, arguing these factors made WBTC an unacceptable risk.

Furthermore, Coinbase’s legal filing detailed its concerns about Sun, noting allegations of fraud and other misconduct tied to him. It also questioned BiT Global’s credibility because of its association with Sun.

The filing stated:

So too is any acknowledgement that he has repeatedly been accused of, investigated for, and sued for financial misconduct, and that reports of his alleged misdeeds abound in the press and crypto community more broadly.

Many believe Coinbase has failed to provide clear legal or technical grounds for delisting WBTC, instead relying on Sun’s reputation to justify its actions.

One of X's users, @Pledditor, expressed frustration by calling the justification weak. They described Coinbase's decision as “just guilt by association”.

While Coinbase faces criticism over its delisting of WBTC, Binance is dealing with its own legal challenges. Recently, Mark Longo accused the exchange of misusing his "Peanut the Squirrel" branding for the PNUT memecoin. How did the debate between Binance and Longo go? Read the full story.