Video: Unpacking Justin Sun’s messy WBTC deal with BitGo

BitGo’s August 9 announcement that it was partnering with Justin Sun and BitGlobal for wrapped bitcoin (WBTC) has stoked controversy across the ecosystem and drawn greater attention to Sun’s other projects.

Following the announcement, MakerDAO decided to disable new borrows against WBTC and Coinbase announced its own wrapped bitcoin product, cbBTC — a move that has drawn the ire of Sun.

He has accused cbBTC of operating without proof-of-reserves or audits, going as far as to claim that exchanges that haven’t yet completed a proof-of-reserves are “unable to meet the requirements.”

Unfortunately for him, Poloniex, an exchange owned by Sun that operates a wrapped bitcoin product far larger than cbBTC, doesn’t have a proof-of-reserves either.

HTX, a Sun-advised exchange, relies extensively on this product, making up more than half of the ‘bitcoin’ this exchange holds.

Read more: Justin Sun reveals Poloniex issues prevent proof of reserves

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.