A U.S. federal judge has ruled in favor of Coinbase in its decision to delist Wrapped Bitcoin (wBTC), rejecting BiT Global’s request for a temporary restraining order to block the move. The Dec. 18 ruling came after BiT Global filed a lawsuit on Dec. 13, alleging that Coinbase’s decision to delist wBTC would harm its market value and result in substantial financial losses for holders.

Judge Araceli Martínez-Olguín stated that BiT Global’s legal arguments lacked evidence of “imminent irreparable harm.” She pointed out that the lawsuit was filed weeks after Coinbase’s Nov. 19 announcement, undermining claims of urgency. The judge also criticized BiT Global’s case as speculative, lacking concrete proof of market damage.

Coinbase had announced the suspension of wBTC trading, effective Dec. 19, citing risks tied to the coin's association with Tron founder Justin Sun. The exchange argued that Sun’s involvement in the project posed “unacceptable risks,” referencing allegations of fraud and previous regulatory scrutiny by U.S. authorities, including the Securities and Exchange Commission (SEC).

BiT Global, in partnership with custodian BitGo, took control of wBTC reserves earlier this year, with Sun’s involvement raising concerns among market players. Coinbase’s legal team argued that wBTC circulation began declining when Sun’s involvement was announced, not due to their delisting decision. Meanwhile, BiT Global's lawyers accused Coinbase of using Sun as a “pretext” for their actions.

Despite the ruling, Judge Martínez-Olguín allowed BiT Global to present further arguments, leaving open the possibility of revisiting the case. For now, Coinbase’s stance reinforces its commitment to risk management and compliance amid ongoing industry scrutiny.