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Coinbase Faces Criticism for Linking wBTC Delisting to Justin Sun
In a recent court filing, Coinbase has come under fire for delisting Wrapped Bitcoin (wBTC) due to its association with Tron founder Justin Sun. The exchange cited “reputation risk” as the reason for the delisting, sparking widespread criticism and irony.
According to reports, Pledditor, a well-known crypto enthusiast, noted that Coinbase’s reasoning is flimsy at best, stating that there are no technical or legal arguments provided for why wBTC cannot be listed. Instead, it seems that the exchange has taken issue with Justin Sun’s reputation, allegedly based on unproven accusations.
Gabor Gurbacs, a prominent figure in the crypto space and adviser to VanEck, highlighted the hypocrisy of Coinbase’s stance, remarking that they themselves are facing numerous legal challenges from regulatory bodies. “Questioning someone’s reputation this way might just bring out skeletons from their own closet,” he wrote on Twitter.
This criticism is particularly ironic given Coinbase’s own legal troubles. As reported earlier, the exchange is currently facing a lawsuit filed by the SEC in June 2023, alleging that they offered unregistered securities through tokens listed on their platform. Furthermore, in January 2023, Coinbase settled with the New York Department of Financial Services for $100 million over concerns about its compliance program.
As critics pointed out, it’s not only unfair to delist wBTC solely based on Justin Sun’s reputation but also raises questions about Coinbase’s own credibility and willingness to engage in a witch hunt.
Source: coinpedia.org
