BitGo CEO Mike Belshe has dismissed concerns that Justin Sun’s involvement in the Wrapped Bitcoin (WBTC) project could affect its security or transparency.
On August 9, BitGo announced a shift in its WBTC operations, expanding its custodial locations from the United States to include Singapore and Hong Kong. This change involves a partnership with Hong Kong-based BiT Global and a collaboration with the Tron ecosystem and its CEO, Justin Sun.
Despite these updates, there have been concerns regarding Sun’s involvement. Block Analitica Labs (BA Labs), a risk management firm, has raised alarms about potential risks associated with projects linked to Sun, suggesting operational and transparency issues.
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In response, Belshe downplayed these fears, attributing them more to Sun’s name than to any actual risks. He assured that the security protocols for WBTC remain unchanged and that BitGo continues to use its established technology for transaction co-signing. Belshe emphasized that BitGo will only sign transactions backed by appropriate deposits or ownership of burnt tokens and that the risk associated with the treasury is mitigated by separating keys among different parties.
Sun also addressed the issue on August 11 via social media, affirming that there have been no changes to WBTC’s security and that his role is purely strategic. He reiterated that he does not have direct access to WBTC funds and that the security of the reserves remains intact with BitGo’s cold wallet technology and multiple backups.
BA Labs has proposed an executive vote on August 12 to determine whether to proceed with changes to WBTC holdings.
Cre: cointelegraph
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