The well-known exchange Coinbase has decided to delist Wrapped Bitcoin (WBTC) due to the controversial involvement of Tron founder Justin Sun in managing WBTC. This move has led to dissatisfaction from WBTC custodian BiT Global, resulting in a lawsuit. However, on December 18, a U.S. federal court ruled in favor of Coinbase’s decision to delist WBTC, stating that BiT Global had not provided sufficient evidence and should prepare adequately before continuing its appeal. Meanwhile, a copy has quietly been initiated somewhere on the blockchain.
**The WBTC Delisting Case: A Showdown Between Coinbase and Justin Sun**
The highly publicized WBTC delisting case began in November when Coinbase determined that Wrapped Bitcoin (WBTC) did not meet listing standards, leading to a decision to halt all WBTC-related trading on December 19. Following the announcement, WBTC custodian BiT Global expressed its dissatisfaction, ultimately filing a lawsuit against Coinbase, alleging “monopolistic practices to promote its own Wrapped Bitcoin, cbBTC,” and seeking $1 billion in damages along with a temporary restraining order from the court. Justin Sun, who took over the management of WBTC, also took to Twitter to criticize Coinbase’s legal team, stating, “This is double standards.”
**Federal Court Supports WBTC Delisting; BiT Global’s Injunction Request Denied**
In its response on December 17, Coinbase directly addressed the issue, stating, “The decision to delist was made precisely because of Justin Sun’s involvement with WBTC.” Sun has previously faced allegations of fraud and market manipulation, leading to significant doubts about his credibility within the industry. On December 18, during a hearing, a U.S. federal court denied BiT Global’s request for a temporary restraining order against Coinbase and allowed Coinbase to proceed with its plan to suspend WBTC trading. The court noted that BiT Global took legal action weeks after Coinbase’s announcement, indicating that the “delisting” was not as “urgent” for BiT Global as claimed. Furthermore, BiT Global failed to provide adequate evidence to demonstrate that the delisting would cause “immediate and irreparable harm,” resulting in the denial of the injunction.
**Shortly After the Ruling, Trump’s Project Wallet cbBTC Fully Converted to WBTC**
Since Justin Sun’s $30 million purchase of tokens from Trump’s crypto project World Liberty Financial (WLFI) on November 26, making him the largest investor in the project, World Liberty Financial announced on November 27 that it had officially appointed Sun as a project advisor. According to on-chain data platform Lookonchain, shortly after the WBTC hearing ruling, nearly 103 cbBTC, equivalent to about $10.4 million, from the wallet of the Trump crypto project WLF, were quietly converted into 103 WBTC.
Provided by on-chain data platform Lookonchain
**WLF Chief Advisor Justin Sun May Be Strategically Positioning**
It appears that WLF has considerable confidence in WBTC, possibly related to the collaboration between WBTC custodian BiT Global and Justin Sun. Although Coinbase announced the impending delisting of WBTC and the court has ruled in favor of the delisting, WLF swiftly converted 103 cbBTC into nearly equivalent WBTC after the hearing, with Justin Sun conveniently serving as WLF’s chief project advisor.
Whether this operation is merely an asset adjustment, a move driven by commercial interests, a strategy to promote WBTC, or a precursor to Justin Sun’s next major action remains uncertain.
(Risk Warning: Cryptocurrency investments carry a high level of risk, and prices can be highly volatile, potentially resulting in the loss of your entire principal. Please assess risks carefully.)