Court Says Coinbase Raises Hand in ”Justin Sunrisk” Lawsuit to Delist wBTC

On the 19th (local time), it was reported that Coinbase will likely be able to go ahead with its planned plan to halt trading of wBTC following a federal lawsuit.
According to reports, a federal judge in the Northern District of California has ordered BitGlobal (BiT
Global, Coinbase has filed a lawsuit against the company for allegedly using Wrapped Bitcoin,
The company has rejected a request for a provisional injunction to prevent the delisting of wBTC.
During a video hearing on the 18th, Judge Martínez-Olguín said Bitglobal's legal team had argued that Coinbase's delisting of wBTC was imminent and that it would be unable to recover.
On December 13, Bitglobal ruled that Coinbase's decision to delist wBTC in November had caused damage to the market.
The judge wrote that "the fact that Bitglobal did not file suit for several weeks after Coinbase announced its plans to delist lends some credence to their claims.
"Bitglobal has not provided any evidence of what will happen in the future, and the legal team's arguments are merely speculation about the outcomes that will occur in the market," he said.
On November 19, Coinbase announced that it would stop trading wBTC on its exchange starting December 19. Bitglobal argued in its lawsuit that Coinbase's decision was a violation of wBTC guarantees.
On the other hand, Tron founder Justin
BitGlobal, which is partnered with Sun, is in provisional measures before the delisting is made official on December 19th.
In response, Coinbase has sought to obtain a deregistration order from Justin Sun, who reportedly violated industry and government standards aimed at preventing fraud.
The custodian company that holds wBTC's bitcoin reserves, BitGo, said in August that it had decided to delist the cryptocurrency due to the risk of the cryptocurrency being handed over to the custodian.
Through the partnership, Coinbase announced that it would share cryptocurrency custody with Bitglobal.
"We have raised serious doubts about the reliability of Bitglobal's wBTC due to past cases brought against it by authorities including the European Commission," the company said in a statement.