Coinbase slammed for linking WBTC delisting to Justin Sun
The cryptocurrency community has fired back against Coinbase’s explanation for delisting Wrapped Bitcoin, which the exchange linked to the “unacceptable risk” associated with Tron founder Justin Sun.
In the filing, Coinbase cited risks tied to Sun, including accusations of financial misconduct and regulatory investigations.
The filing has drawn sharp criticism from within the crypto community, with many accusing Coinbase of failing to provide adequate legal or technical justification for the delisting.
Some have also highlighted that Coinbase itself has been under numerous investigations.
“Guilt by association”
“It’s basically just they don’t like Justin Sun,” Pledditor stated, adding that it’s “just guilt by association.”
Pledditor criticized Coinbase for not providing legal and technical reasoning for delisting WBTC. Source: Pledditor
The Coinbase filing referenced Sun’s involvement in alleged misconduct, stating that he has “reportedly violated industry and government standards intended to prevent fraud.” The exchange expressed doubts about BiT Global’s reliability due to its association with Sun.
“So too is any acknowledgement 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,” Coinbase added.
SEC’s lawsuit against Coinbase is ongoing
Some prominent community members, such as VanEck adviser Gabor Gurbacs, have drawn attention to Coinbase’s legal troubles in the US in the context of the WBTC case.
“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 wrote in an X post reposted by Sun.
“Questioning someone’s reputation this way might just bring out skeletons from their own closet,” he added.
