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WBTC Delisting Debate: Coinbase Faces Backlash Over Justin Sun Link

Key Takeaways

  • Coinbase faced backlash for delisting Wrapped Bitcoin, citing concerns over Justin Sun's alleged misconduct;
  • Coinbase's legal filing emphasized Sun’s controversial reputation and BiT Global's ties to him as risks;
  • Critics argue Coinbase's reasoning lacks clear legal or technical justification, calling it "guilt by association."
WBTC Delisting Debate: Coinbase Faces Backlash Over Justin Sun Link

Coinbase’s $4.04B decision to stop supporting Wrapped Bitcoin WBTC $94,382.14 has drawn backlash from the cryptocurrency community.

The exchange cited its concerns about Tron TRX $0.2537 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.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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