Coinbase has filed a motion to dismiss a lawsuit from BiT Global that challenges the firm’s decision to delist Wrapped Bitcoin (wBTC), according to a Jan. 21 court filing.
This follows the denial of BiT Global’s earlier legal attempt to block the delisting through a court order.
Coinbase has removed wBTC since last year because of concerns over its relationship with Justin Sun. Justin Sun founded the Tron blockchain. The exchange cited Sun’s history of alleged fraudulent activities and market manipulation as posing significant user risks.
BiT Global, in response, filed a case to prevent delisting. It claimed it would damage its business. Coinbase called the case baseless and Coinbase denied it.
Coinbase’s latest move
In its latest filing, Coinbase is seeking the outright dismissal of BiT Global’s claims.
The exchange claimed an internal process of extensive review guided their decision to delist the wBTC. BiT Global was alleged to have failed to comply with the antitrust standards, and Coinbase refused to host a risky asset because of this.
BiT Global also asserts in the filing that Coinbase has made false or misleading statements regarding wBTC.
As per the exchange
“Coinbase decided—based on a rigorous internal process—that wBTC should be delisted from its exchange due to the unacceptable risk that control of wBTC would fall into the hands of Mr. Sun. No law protects BiT from the consequences of its own decision or requires Coinbase to reverse course on judgments made to protect its customers and its platform.”
Paul Grewal, Coinbase’s Chief Legal Officer, emphasized that the platform is not obligated to support tokens that compromise security or user trust.
He highlighted Coinbase’s responsibility to prioritize its customers’ safety and its platform’s integrity.
Grewal is a stated name.
“No law compels Coinbase to host an asset that carries an unacceptable level of risk due to its connection with someone like Justin Sun. We have every right and responsibility to enforce our to ensure a secure and trustworthy trading environment for our users.”
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
