Wrapped Bitcoin (WBTC) experienced a dramatic flash crash on Binance, dropping to an all-time low of approximately $5,200 on November 23, 2024. This incident occurred despite normal trading conditions, as WBTC began the day valued around $98,000. The crash was attributed to an electronic error in the trading system but was brief, and prices recovered quickly, closing near $97,000 by the end of the day. This event followed Coinbase's announcement on November 19 that it would suspend trading of WBTC on December 19, a decision criticized by the custodian BiT Global. The announcement of the delisting was perceived as a move to support Coinbase's own tokenized Bitcoin product, cbBTC, thereby reducing competition from WBTC. The controversy surrounding WBTC also involved concerns over its custodial structure and the role of Tron founder Justin Sun, which has raised alarms within the crypto community.

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