Coinbase has issued a rebuttal to a lawsuit by BiT Global, a Justin Sun-affiliated entity, challenging the exchanges decision to delist Wrapped Bitcoin (WBTC).
Paul Grewal, the firms Chief Legal Officer, announced the filing on X, saying that his company had offered its response to BiT Globals effort to stop the delisting of WBTC before any discovery or formal response to their claims, which he described as bogus.
In the submission shared by Grewal, Coinbase defended its actions, stating that BiT Global failed to clarify its ownership structure or address concerns about TRON founder Justin Suns involvement. The exchange argued that his potential influence posed significant risks to customers as well as the platforms integrity.
BiT seeks to force Coinbase to do business with an entity that no longer complies with Coinbases standards due to Mr. Suns material involvement, read the document.
It also highlighted that BiT Global delayed filing its lawsuit and motion for a temporary restraining order for nearly a month, therefore undermining any claims of urgent harm.
The San Francisco-based exchange also dismissed accusations of financial and reputational damage as speculative, noting that WBTC constitutes less than 1% of its transaction volume. It also argued that any loss of confidence in the product came from its association with Sun rather than the delisting decision.
Overall, the crypto platform defended its action as a lawful exercise of business judgment to protect itself and its customers, citing court precedents supporting the rights of tech operations to set their own standards. Additionally, it denied BiT Globals legal accusations as baseless and urged the court to deny emergency relief.
In November, Coinbase announced its decision to delist WBTC on December 19, attributing its decision to worries over the assets association with Sun. This move caused major backlash, with many in the crypto community accusing the firm of favoring its own tokenized Bitcoin product, cbBTC.
In response, BiT Global filed a lawsuit on December 13, accusing the exchange of engaging in monopolistic behavior, using predatory tactics to undermine WBTCs market position, and making false statements about the tokens compliance with listing standards.
The TRON founder also fired back by criticizing the competitors offering. He claimed it lacks proof-of-reserve, has not been audited, and could allow the exchange to freeze user balances, therefore posing security risks to decentralized finance (DeFi).
Coinbase, however, countered this by pointing out Suns history of allegations of financial misconduct, including assertions of fraud and market manipulation. The latest court filing pointed out that the 34-year-old has been sued by the U.S. Securities and Exchange Commission (SEC) and is reportedly under investigation by several law enforcers.
