Coinbase slammed for linking WBTC delisting to Justin Sun

As an analyst with extensive experience in the cryptocurrency industry, I find myself increasingly troubled by the actions of major players like Coinbase. The recent delisting of Wrapped Bitcoin (WBTC) seems to be more about “guilt by association” than any substantial justification.

As a crypto investor, I’ve found myself at odds with Coinbase’s reasoning behind their decision to delist Wrapped Bitcoin. They’ve tied this move to the perceived risks related to Tron founder Justin Sun, which I find questionable and worthy of challenge within our crypto community.

On December 17th, Coinbase submitted a reply to a legal action initiated by BiT Global, an organization linked to Sun, who alleged that Coinbase damaged the Wrapped Bitcoin (WBTC) market by removing WBTC from their platform in November.

According to documents they’ve submitted, Coinbase mentioned potential problems with Sun, such as allegations of financial impropriety and ongoing regulatory scrutiny.

Critics from the cryptocurrency sector have harshly criticized the decision to remove certain coins from Coinbase, claiming that the company didn’t offer sufficient legal or technical reasons for their removal.

Some have also highlighted that Coinbase itself has been under numerous investigations.

“Guilt by association”

Bitcoin supporter and critic of Coinbase, identified as Pledditor, voiced their disapproval on X on December 17, arguing that the exchange’s reasoning behind the delisting was insufficiently robust.

Essentially, the post from Pledditor suggests that they simply dislike Justin Sun. They also mentioned that this dislike is due to ‘association by guilt’.

In the Coinbase filing, it was mentioned that Sun’s actions were linked to suspected wrongdoing, as he supposedly breached rules designed to thwart fraud in both the industry and government sectors. This uncertainty about BiT Global arose because of its connection to Sun.

Coinbase also noted that there have been numerous allegations against him regarding financial wrongdoing, investigations, and lawsuits, which are widely reported not only in mainstream media but also within the cryptocurrency community at large.

In March 2023, Justin Sun, creator of the TRON (TRX) digital currency, faced accusations of fraud and violating securities laws from the U.S. Securities and Exchange Commission (SEC).

As a researcher, I’ve come across reports suggesting that I’ve been under scrutiny by both the FBI and the Prosecutor’s Office for the Southern District of New York, an investigation that I have been subject to.

SEC’s lawsuit against Coinbase is ongoing

Notable figures within the community, including advisor Gabor Gurbacs from VanEck, are bringing focus to Coinbase’s ongoing legal issues in the U.S., particularly as they relate to the WBTC situation.

It’s quite unexpected that Coinbase is dealing with Justin Tron in such a manner, given that Coinbase itself is being scrutinized by the SEC and likely numerous other investigations, possibly even more than what Justin and his ventures are facing, as suggested by Gurbacs in a post he shared on X and later reposted by Sun.

He mentioned, “By challenging someone’s good name like this, it could very well unearth hidden issues from their past.

In June 2023, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase, accusing them of selling unregistered securities. This move followed close on the heels of the SEC accusing Sun of fraud earlier. The legal proceedings between Coinbase and the SEC are still ongoing. Notably, Coinbase’s top legal officer, Paul Grewal, has publicly appealed to regulators to take a more cooperative stance towards the crypto sector.

In January 2023, Coinbase agreed on a $100 million settlement with the New York State’s Financial Department concerning a dispute about their compliance program, which occurred earlier.

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2024-12-18 13:20