A recent decision by a federal judge has left BiT Global without a temporary restraining order in its ongoing legal battle with Coinbase over the delisting of Wrapped Bitcoin (wBTC). The virtual hearing, which took place in the Northern District of California, saw Judge Araceli Martínez-Olguín point out that BiT Global’s attorneys failed to establish any immediate, irreversible harm as a consequence of Coinbase’s actions.
Background of the Lawsuit
BiT Global launched its lawsuit on December 13, claiming that Coinbase’s choice to delist wBTC in November severely impacted the cryptocurrency market. However, Judge Martínez-Olguín indicated that the gap between Coinbase’s announcement and BiT Global’s filing weakened their case. She remarked that the evidence provided by BiT Global was largely speculative, lacking the solid proof needed to support their claims of future market damage.
Arguments Presented in Court
Coinbase had declared its intention to stop wBTC trading starting December 19, which BiT Global argued could lead to significant financial losses for wBTC holders. Associated with Justin Sun, the founder of Tron, BiT Global sought the restraining order to delay the official delisting before it occurred. In its defense, Coinbase stated that the decision to delist was motivated by concerns over Sun’s influence on wBTC, referencing his previous legal issues with U.S. regulators.
During the hearing, Sonal Mehta, the attorney for Coinbase from WilmerHale, suggested that the decline in wBTC’s circulation began after BiT Global disclosed Sun’s involvement in the project, rather than as a direct result of Coinbase’s announcement. Conversely, Cyclone Covey, representing BiT Global, argued that the risks around Sun were merely a cover for Coinbase’s choice to delist the token.
Future Implications
Despite the setback, Judge Martínez-Olguín mentioned that BiT Global’s legal team could still come forward with additional arguments to challenge Coinbase’s decision on the future of wBTC.
Source: Cointelegraph
