Crypto Community Criticizes Coinbase Over Wrapped Bitcoin Delisting

The cryptocurrency community has criticized Coinbase for its explanation of delisting Wrapped Bitcoin (WBTC), linking the decision to “unacceptable risk” associated with Tron founder Justin Sun. On Dec. 17, Coinbase responded to a lawsuit filed by Sun-affiliated BiT Global, which accused the exchange of harming the WBTC market by removing the token in November. In its filing, Coinbase cited risks tied to Sun, including allegations of financial misconduct and ongoing regulatory investigations. “Guilt by Association” The filing sparked backlash within the crypto community, with many arguing Coinbase failed to provide sufficient legal or technical justification for the delisting. Critics also pointed out that Coinbase itself has been under several regulatory investigations. Bitcoin enthusiast and Coinbase skeptic Pledditor took to X on Dec. 17, accusing the exchange of making a decision based solely on personal bias. “It’s basically just they don’t like Justin Sun,” Pledditor stated, calling it “guilt by association.” The filing referenced Sun’s alleged misconduct, claiming he has “reportedly violated industry and government standards intended to prevent fraud.” Coinbase expressed skepticism over BiT Global’s reliability, citing its association with Sun. “So too is any acknowledgment that he has repeatedly been accused of, investigated for, and sued for financial misconduct, and that reports of his alleged misdeeds abound in the press and crypto community more broadly,” the filing stated. Sun’s Regulatory Troubles Justin Sun, founder of the Tron cryptocurrency, has faced numerous legal challenges. In March 2023, the U.S. Securities and Exchange Commission (SEC) charged him with fraud and securities violations. He has also reportedly been investigated by the FBI and the Southern District of New York’s prosecutor’s office. Irony Noted by Critics Prominent figures like VanEck adviser Gabor Gurbacs pointed out the irony of Coinbase’s actions, given its own legal troubles. “It’s ironic that Coinbase is treating Justin Tron this way. Coinbase itself is under SEC and numerous other investigations, probably many more than Justin and his businesses,” Gurbacs said in an X post shared by Sun.