BitGo wraps bitcoin business into multi-legal protection
Cryptocurrency escrow platform BitGo is set to move its wholesale bitcoin business into a multi-jurisdictional and multi-institutional custody structure to boost its security efforts.
Currently, BitGo's Wrapped Bitcoin (WBTC) custody operations and cold storage are based only in the United States. However, in a statement on August 9, the company has started a 60-day transition period to include its main Bitcoin (BTC) safe haven and jurisdiction, including Hong Kong and Singapore.
WBTC stands for Bitcoin and allows users to connect to Ethereum-based decentralized financial protocols and decentralized exchanges.
BitGo ensures the use of the same multi-sig technology
BitGo says the transfer of its WBTC business will make it a “world's first multi-jurisdictional and multi-institutional hedge through a unique partnership and partnership with BiT Global.”
The security platform will continue to use the same “multi-signature technology and deep cold storage,” he said, but now keys can be distributed across the globe, reducing the risk of a single point of failure.
It said the transition would be “seamless and transparent” when it was completed on October 8. A key point highlighted and reiterated by BitGo's CEO is the involvement of the Tron Network and its founder, Justin Sun, in its development. .
Tron and Justin Sun participation
In a post on August 10, BitGo CEO Mike Belshe admitted that this joint venture partnership includes BitGo, Justin Sun and the Tron ecosystem. Tron founder Justin Sun reiterated that “it will not be able to move money.” This is in the ongoing case against him by the United States Securities and Exchange Commission.
“We made sure to be very clear about the name,” Belsche added.
In the year In April 2024, Cointelegraph reported that Tron had asked a New York federal court to dismiss the US SEC's lawsuit against it, arguing that the regulator was targeting “primarily foreign conduct”.
“The SEC is not a global regulator,” Thorne said a year after the lawsuit was initially filed.
Related: WBTC address poisoning returns all funds to victim after negotiation
In the year In March 2023, the SEC filed a civil suit against Sun, Tron Foundation, Bittor Foundation and Rainberry alleging “unregistered discounts and sales orchestration, fraudulent trading and illegal transfer” of Tron as a crypto-asset security.
The financial regulator accused Sun of engaging in “manipulative wash business” by helping boost public interest in TRX and BitTorrent with the help of celebrities including Soulja Boy, Lindsay Lohan, Jake Paul and Akon.
Cointelegraph reached out to Tron Network for comment, but did not receive an immediate response at the time of publication.
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