WBTC coin logo visible through a loope. Source: Casimiro - stock.adobe.com

Key Takeaways:

BitGo is expanding Wrapped Bitcoin (WBTC) custodial locations to Singapore and Hong Kong through a joint venture with BiT Global and Tron CEO Justin Sun.
Concerns about WBTC security and transparency have arisen due to Sun’s involvement, prompting a proposed vote within MakerDAO to limit new WBTC activities.
BitGo CEO Mike Belshe assured that WBTC’s security protocols remain intact, with Justin Sun clarifying his purely strategic role.

BitGo recently announced plans to diversify the custodial locations for its Wrapped Bitcoin (WBTC), previously stored only in the U.S., by expanding to Singapore and Hong Kong.

This move involves a joint venture with Hong Kong-based BiT Global, the Tron ecosystem, and Tron CEO Justin Sun.

BitGo is pleased to announce the move of its WBTC business to the world’s first multi-jurisdictional and multi-institutional custody via a unique partnership and joint-venture with BiT Global.

This upgrade will occur 60 days from today with no disruption or interruptions to… pic.twitter.com/yNUoyTwsqL
— BitGo (@BitGo) August 9, 2024

Sun’s involvement has sparked concerns about the security and transparency of WBTC, given his history with controversial crypto projects.

Risk management firm Block Analitica Labs (BA Labs) expressed worries, leading to a proposed vote within the MakerDAO community to limit new WBTC activities.

Despite these concerns, BitGo CEO Mike Belshe defended the security of WBTC, emphasizing that BitGo’s protocols remain unchanged and that all transactions continue to be co-signed by the company.

Recently, I've heard that the community has some concerns about my involvement in various projects, including WBTC. I would like to clarify the following points:

There have been no changes to WBTC compared to before. The audits are conducted in real-time and can be accessed via…
— H.E. Justin Sun 孙宇晨 (@justinsuntron) August 10, 2024

Sun also reassured that his role is purely strategic, with no control over WBTC’s private keys.

The MakerDAO community will vote on potential changes to WBTC holdings on August 12.

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Written by

Adam Morris

Co-Founder / Managing Editor

Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.

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