Crypto exchange Coinbase has cited risks associated with Tron founder Justin Sun during a lawsuit over the delisting of Wrapped Bitcoin (wBTC).
In a recent complaint, the wBTC custodian and Sun-affiliated BiT Global accused Coinbase uses wBTC – the tokenized representation of Bitcoin (BTC) on the Ethereum (ETH) blockchain – as a “cash grab” before removing it and replacing it with its own version of the asset.
The complaint was said
“In the case of wrapped Bitcoin, Coinbase viewed it as just another cash grab. It saw a competitor, wBTC, that had something it wanted: an innovative product that unlocked value inherent in Bitcoin and let users use that value in bold new ways…
Coinbase decided it would take what it wanted. Once the value of wBTC was demonstrated, Coinbase changed the rules and removed wBTC from its platform so that it could no longer be traded on the Coinbase platform – and that happened shortly after the launch of its own counterfeit clone called cbBTC.”
In response Following the complaint, Coinbase says it made the decision to delist wBTC largely due to its ties to Justin Sun and the risks that would arise if he had any influence over it. The exchange notes that Sun’s name was “conspicuously” omitted from BiT’s complaint.
“Coinbase has made the decision – based on a rigorous internal process – that wBTC should be removed from Coinbase’s exchange due to the unacceptable risk that control of wBTC would fall to Justin Sun. BiT is now asking the Court to overrule, on an emergency basis no less, Coinbase’s assessment that continuing to list wBTC could compromise the integrity of its platform and put customers at risk.
BiT is trying to force Coinbase to do business with an entity that no longer meets Coinbase’s standards due to Mr. Sun’s “material involvement.” And yet, Mr. Sun’s name and his connection to wBTC is conspicuously absent from BiT’s complaint and TRO (temporary restraining order) request. This includes recognizing that he has been repeatedly accused, investigated and charged for financial misconduct, and that reports of his alleged misdeeds abound in the press and the broader crypto community.”
Coinbase also claims that Sun is “notorious” in the crypto community and has been accused of various misdeeds, including market manipulation and digital asset misappropriation.
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