BitGo’s CEO argues that WBTC’s security has not changed amid threats.
BitGo CEO Mike Belshe shot down complaints that Justin Sun's involvement in the embattled bitcoin business would in any way compromise its security or transparency.
In the year On August 9, escrow platform BitGo announced changes to its wrapped Bitcoin (WBTC) business, expanding its custodial jurisdiction for core Bitcoin (BTC) — previously held in the United States — to include Singapore and Hong Kong.
The joint venture includes a “strategic partnership” between Hong Kong-based Bit Global and BitGo, the Tron ecosystem and Tron CEO Justin Sun.
However, some concerns have been raised about Sun's involvement.
Risk management firm Block Analytica Labs (BA Labs) has warned of a “high level of risk”, saying that crypto projects linked to Justin Sun face operational and transparency issues.
In a post on the MakerDAO forum on August 11th, BA Labs proposed an upcoming executive vote to foreclose all new WBTC debt and issue new loans with WBTC collateral.
According to BitGo's CEO, “There is nothing shiny.”
But BitGo CEO Mike Belshe downplayed the concerns, arguing that the controversy was “a reaction to Justin Sun's name rather than facts.”
On the MakerDAO forum, where BA Labs' proposed changes were published, Belsche said WBTC's security protocols are not at risk, remaining “the same as what you have today.”
“BitGo is still signing all transactions using the same technology it's always had; BitGo simply won't sign a transaction that doesn't have a corresponding Mint BTC deposit or burn token ownership,” he said.
“Traders are still there. This leaves the rest of the main vault vulnerable, keys are now separated across parties in a way they weren't before.
In a post on social media platform X on August 11, the Sun echoed Belshe's comment that “there is no change in WBTC” and that his participation does not include receiving any financial support.
“The keys are still protected using the same Bitgo cold wallet technology and offline keys with backups in many countries and regions,” he said.
“My personal involvement in WBTC is entirely strategic. I do not control the WBTC backup private keys and cannot move any BTC backup.
The BA Labs team has proposed an executive vote for August 12 to decide whether the DAO will move forward with changes to WBTC's holdings.
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