In a post on X on Sept. 12, Justin Sun let rip at Coinbase, stating that its wrapped Bitcoin launch was a \u201cdark day for BTC.\u201d<\/p>\n
Sun said that cbBTC lacks proof-of-reserve, has no audits, and the company can freeze anyone\u2019s balance anytime.\u00a0He said it essentially is \u201cjust trust me,\u201d as any U.S. government subpoena could seize all of your BTC.<\/p>\n
\u201cThere\u2019s no better representation of central bank Bitcoin than this.\u201d<\/p>\n
The American crypto exchange launched cbBTC on Ethereum and its layer-2 network Base on Sept. 12, as reported<\/a> by CryptoPotato<\/em>.<\/p>\n Sun said he was \u201cfriends with many DeFi protocol founders\u201d and cautioned that integrating cbBTC \u201cwill pose major security risks to decentralized finance.\u201d<\/p>\n \u201cThere is no more ridiculous combination in the world than putting central banks and Bitcoin together. I imagine this is a day Satoshi Nakamoto could never have envisioned when creating Bitcoin,\u201d Sun continued.<\/p>\n cbbtc=central bank btc. There is no more ridiculous combination in the world than putting central banks and Bitcoin together. I imagine this is a day Satoshi Nakamoto could never have envisioned when creating Bitcoin. https:\/\/t.co\/bi7EkKznpn<\/a><\/p>\n \u2014 H.E. Justin Sun(hiring) (@justinsuntron) September 12, 2024<\/a><\/p>\n\n The Tron<\/a> founder is in the middle of a controversy surrounding the rival product, current industry standard, and the largest of the wrapped Bitcoin variants, WBTC.\u00a0In August, WBTC custodian BitGo announced a partnership with Hong Kong-based BitGlobal to diversify custody operations and cold storage.<\/p>\n BitGlobal is the exchange formerly known as Bithumb Global, which has connections to Justin Sun, as evidenced by shared directors and corporate structures. Despite claims of a decentralized governance structure for WBTC, it appears that the large DAO was not consulted about the change in custody, reported<\/a> Protos at the time.<\/p>\n The new custody setup involves BitGlobal and BitGo sharing control of keys, with recent modifications to include BitGo Singapore Ltd.<\/p>\n Sun is also associated with a competing wrapped Bitcoin product on the Tron network, which allegedly lacks transparency about its BTC storage and security.\u00a0These issues have been cause for concern<\/a> within the crypto and DeFi communities that rely on WBTC.<\/p>\n There are around 152,958 wrapped Bitcoin on Ethereum, according to the official order book. It has a market cap of around $8.8 billion, which is down 44% from its peak in November 2021.<\/p>\n DeFi pioneer Sky, formerly known as Maker, has proposed ditching all WBTC collateral from its SparkLend liquidity protocol. In a forum post<\/a> on Sept. 12, the team stated:<\/p>\n \u201cBased on available evidence, it is highly likely that Justin Sun or affiliates control BitGlobal, with ownership concealed through shell companies and nominee directors.\u201d<\/p>\n The post Justin Sun Lambastes Coinbase\u2019s \u2018Central Bank Bitcoin\u2019 Amid WBTC Controversy\u00a0<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" In a post on X on Sept. 12, Justin Sun let rip at Coinbase, stating that its wrapped Bitcoin launch was a \u201cdark day for BTC.\u201d Sun said that cbBTC lacks proof-of-reserve, has no audits, and the company can freeze anyone\u2019s balance anytime.\u00a0He said it essentially is \u201cjust trust me,\u201d as any U.S. government subpoena […]<\/p>\n","protected":false},"author":0,"featured_media":6202,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-6201","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/6201"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6201"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/6201\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/6202"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6201"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6201"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6201"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}But There\u2019s More \u2026<\/h2>\n
Sky Drops WBTC<\/h2>\n