Coinbase seeks dismissal of BiT Global lawsuit over wBTC delisting

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.

Last year, Coinbase removed wBTC from its platform due to concerns about its association with Justin Sun, the founder of Tron blockchain. The exchange cited Sun’s history of alleged fraudulent activities and market manipulation as posing significant user risks.

In response, BiT Global filed a lawsuit to prevent the delisting, claiming it would harm its operations. However, the court denied the request, with Coinbase labeling the lawsuit as baseless.

Coinbase’s latest move

In its latest filing, Coinbase is seeking the outright dismissal of BiT Global’s claims.

The exchange maintained that an extensive internal review process guided its decision to delist wBTC. It argued that BiT Global failed to meet the legal standards for an antitrust claim, adding that no law compels Coinbase to host an asset deemed risky.

The filing further asserts that BiT Global has not provided evidence that Coinbase made misleading or false statements about wBTC.

According to 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 stated:

“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.”

The post Coinbase seeks dismissal of BiT Global lawsuit over wBTC delisting appeared first on CryptoSlate.

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