Coinbase Withdraws Support for Wrapped Bitcoin (wBTC) As BTC Careens Below $100,000
Top US-based crypto exchange platform Coinbase is removing support for Wrapped Bitcoin (wBTC) as the crypto king crashes below six figures.
In a new thread on the social media platform X, Coinbase Assets says it has disabled trading services for wBTC, the tokenized representation of Bitcoin (BTC) on the Ethereum (ETH) blockchain, as the digital asset no longer meets the firm’s listing standards.
“We have disabled trading for wBTC. Your wBTC funds will remain accessible to you, and you will continue to have the ability to withdraw your funds at any time.”
Coinbase – which first announced its decision to drop support for wBTC in November – said earlier this week that Tron (TRX) founder Justin Sun being associated with the digital asset was an “unacceptable risk.”
Last week, Coinbase was sued by wBTC custodian BiT Global – a firm associated with Sun – for allegedly using wBTC as a “cash grab” before ultimately creating its own version of it and delisting the competition.
“Once the value in wBTC had been demonstrated, Coinbase changed the rules, delisting wBTC from its platform so that it could no longer be traded on the Coinbase platform – and it did so shortly after launching its own knock-off clone called cbBTC.”
However, Coinbase responded and said that BiT Global is attempting to force them to do business with an entity that “no longer meets their standards.”
“Coinbase made the decision – based on a rigorous internal process – that wBTC should be delisted from Coinbase’s exchange due to the unacceptable risk that control of wBTC would fall into the hands of Justin Sun…
BiT seeks to force Coinbase to do business with an entity that no longer complies with Coinbase’s standards due to Mr. Sun’s ‘material involvement.'”
According to Coinbase, Sun is an “infamous” figure in the crypto community and has been accused of many crimes, including market manipulation and misappropriation of funds.
BTC is trading for $97,131 at time of writing, down over 10% from its all-time high of $108,135, reached three days ago.
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