Judge Araceli Martinez-Olguin has rejected BiT Global’s request for a temporary restraining order against Coinbase over the removal of Wrapped Bitcoin (WBTC) from its platform.
This rejected lawsuit was filed by BiT Global, advised by Justin Sun. The lawsuit claimed that Coinbase harmed its reputation and unfairly promoted its version of tokenized Bitcoin, Coinbase Wrapped Bitcoin (cbBTC). They wanted a court order forcing Coinbase to relist WBTC.
This legal action comes after Sun publicly attacked Coinbase, accusing the exchange of failing to complete a proof-of-reserves process. However, Sun’s own Poloniex exchange has not completed such a procedure and instead offers a larger tokenized Bitcoin product that does not disclose its collateral.
Coinbase responded, stating that it considered it a “unacceptable risk that control of wBTC would fall into the hands of Justin Sun.” It further stated that BiT Global “refused to answer” questions on the ultimate ownership of BiT Global.
In other news, Sun’s HTX exchange recently redeemed over 7,000 WBTC, but didn’t include this in its proof-of-reserves. Sun’s actions in the tokenized Bitcoin market have raised many questions about his involvement and motives.
Adding to the confusion, World Liberty Financial, which is advised by Justin Sun and endorsed by Donald Trump, has been acquiring WBTC, apparently exchanging about 100 BTC worth of cbBTC for WBTC.
Sun’s actions in the tokenized Bitcoin market have raised many questions about his involvement and motives.
Also Read: Coinbase Faces $1B Lawsuit from BiT Global for Delisting wBTC
