BitGo, a leading provider of crypto custody services, is changing the structure of its Wrapped Bitcoin (WBTC) to encompass many jurisdictions and organizations. Justin Sun’s position as the founder of the TRON blockchain has raised concerns in the crypto sector regarding this move.
The company stated that it will require 60 days to finalize the shift, thereby extending its custodial operations to include Hong Kong and Singapore. The objective is to enhance security and transparency by employing various custody locations.
The MakerDAO community, a prominent participant in decentralized finance (DeFi), has expressed worries about Justin Sun’s involvement in this transition. They are currently assessing a proposal to remove all outstanding WBTC debts from their network, as they are apprehensive about Sun potentially acquiring excessive power over WBTC.
The broader crypto community harbors the same concerns, thinking that Sun may exploit his authority to generate additional WBTC or manipulate Proof-of-Reserve information.
BitGo CEO Mike Belshe alleviated these concerns by emphasizing the robust security protocols implemented to thwart any potential misuse. He made it clear that BitGo will not permit the creation of WBTC without a corresponding deposit of BTC and underscored the significance of openness.
While Sun is engaged, he is unable to transfer funds within the platform. The WBTC website will continue to offer up-to-date evidence of reserves to ensure transparency.
Doubt continues to exist among members of the cryptocurrency community, as stakeholders remain cautious about the possible hazards associated with Sun’s involvement and its impact on the WBTC ecosystem.
BitGo must make progress in its custody model and demonstrate a strong dedication to protecting the WBTC network to solve these concerns and gain the trust from the company and its partners.
