Has Sun Yuchen quietly orchestrated the conversion of all cbBTC to WBTC in the WLF wallet, a new plot in the WBTC drama?
Coinbase, a well-known exchange, decided to delist Wrapped Bitcoin (WBTC) due to the controversial takeover of WBTC management by Tron founder Justin Sun. This decision led to a legal battle with WBTC custodian BiT Global, who felt dissatisfied and filed a lawsuit. However, the US Federal Court ruled in favor of Coinbase’s delisting of WBTC on 12/18, stating that BiT Global’s evidence was insufficient and advised them to prepare for further appeals. Meanwhile, a copy has quietly emerged online.
The WBTC delisting case becomes a showdown between Coinbase and Justin Sun
The highly publicized WBTC delisting case began in November when Coinbase deemed WBTC not meeting listing standards and decided to halt all WBTC-related transactions on 12/19.
News of this decision sparked dissatisfaction from WBTC custodian BiT Global, who eventually filed a lawsuit, accusing Coinbase of promoting their own wrapped bitcoin cbBTC under the guise of monopolizing the market. They demanded $1 billion in compensation and applied for a temporary restraining order. Justin Sun, who took over the WBTC management affairs, also criticized Coinbase’s legal actions on Twitter, calling it double standards.
Federal Court supports WBTC delisting, BiT Global’s injunction application rejected
Despite Coinbase’s statement in the response filed on 12/17 that the decision to delist WBTC was due to Justin Sun’s involvement, the Federal Court dismissed BiT Global’s temporary restraining order against Coinbase on 12/18. The court allowed Coinbase to proceed with the planned suspension of WBTC transactions.
The court noted that BiT Global took legal action several weeks after Coinbase’s delisting announcement, indicating that the matter was not as urgent for BiT Global. Since BiT Global failed to provide sufficient evidence to prove immediate and irreparable harm from the delisting action, the injunction was rejected.
Shortly after the ruling, funds from the Trump project wallet cbBTC were fully converted into WBTC
After Justin Sun invested $30 million in buying tokens from the Trump crypto project World Liberty Financial on 11/26, becoming the project’s largest investor, World Liberty Financial announced on Twitter on 11/27 that Sun was appointed as a project consultant. According to data from the online platform Lookonchain, shortly after the WBTC hearing, funds from the Trump crypto project World Liberty Financial wallet, approximately 103 cbBTC tokens worth about $10.4 million, were quietly converted into 103 WBTC tokens.
Justin Sun, chief consultant of WLF, may be quietly strategizing
It appears that WLF has confidence in WBTC, possibly due to their cooperation with WBTC custodian BiT Global and Justin Sun. Despite Coinbase’s announcement of the upcoming delisting of WBTC and the court’s support for the delisting, WLF swiftly converted 103 cbBTC tokens into nearly the same amount of WBTC after the hearing. Furthermore, Justin Sun conveniently serves as WLF’s chief project consultant.
Whether this action was a simple asset adjustment, driven by business interests, a promotional strategy for WBTC, or a setup for Justin Sun’s next big move remains to be seen.
(Ruling by the US Federal Court supports Coinbase’s delisting of WBTC! BiT Global’s injunction application rejected, Coinbase’s legal team: Thank you, court)
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