YEREVAN (CoinChapter.com) — Justin Sun, the founder of the Tron Network, recently clarified his role in the Wrapped Bitcoin (WBTC) project on his X profile. On August 10, he addressed concerns about his involvement. He emphasized that his role is purely strategic. Sun also made it clear that he does not control the private keys of the WBTC reserves.
The clarification came amid heightened attention on Sun due to his ongoing legal issues with the U.S. Securities and Exchange Commission (SEC). Sun reassured the community that the management process for WBTC remains unchanged and that all transactions are proceeding as usual, despite the ongoing transition to a new custody model.
Sun further clarified that BitGo and BiT Global, the two entities managing WBTC security, rigorously audit the reserves. He emphasized that they use cutting-edge cold wallet technology and offline key protection systems to safeguard the assets, with key backups strategically stored in multiple locations worldwide to enhance security.
WBTC Custody Expanded Globally with New Multi-Jurisdictional Model
The timing of Sun’s clarification coincides with BitGo’s significant shift in its WBTC custody operations. On August 9, BitGo began transitioning its WBTC operations to a multi-jurisdictional and multi-institutional custody model. The process, which will be completed by October 8, aims to distribute key management across various global locations, including Hong Kong and Singapore, thereby reducing the risk associated with a single point of failure.
BitGo previously centralized its custody operations in the United States. However, the company is now shifting to a global custody model. This move shows BitGo’s commitment to improving security and transparency for its users. Over the next 60 days, BitGo will continue using its multi-signature technology and deep cold storage. The keys will be distributed globally during this transition. BitGo, in partnership with BiT Global, assures that the process will be seamless and transparent.
BitGo CEO Clarifies Justin Sun’s Limited Role in WBTC Amid SEC Concerns
To clarify the situation, BitGo CEO Mike Belsche posted on X on August 10, confirming that the joint venture includes BitGo, Justin Sun, and the Tron ecosystem. Belsche emphasized that despite Sun’s strategic involvement, he does not have the ability to move funds, a crucial point given Sun’s ongoing legal challenges with the SEC.
“We made sure to be very clear about his role,”
Belsche added.
Belsche also urged the community to conduct due diligence on the WBTC setup, emphasizing that the new custody model is designed to enhance the security and reliability of the WBTC reserves as BitGo expands its operations globally.
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