- Justin Sun’s WBTC withdrawals raise decentralization concerns in the crypto community.
- Sun denies control over WBTC reserves, emphasizing strategic involvement.
Tron [TRX] founder Justin Sun is once again in the spotlight, this time for his involvement with Wrapped Bitcoin (WBTC). Recently, Sun’s wallet, identified as “0xbe6,” withdrew 637 WBTC (valued at $40.8 million) from Binance on the Ethereum blockchain, just eight hours prior.
This activity follows a custody deal with BitGo on August 11, where Sun’s wallet has since withdrawn 2,591 WBTC, corresponding with the 2,590 BTC sent to Binance via Sun’s alleged deposit address, “1Fbsri.” In a related move, the “1Fbsri” address transferred an additional 500 BTC ($32.12 million) to Binance just six hours earlier, suggesting further WBTC conversions and withdrawals may occur soon.
Notably, nearly a week ago, the “0xbe6” wallet also withdrew 347.5 WBTC ($20.4 million) from Binance. Meanwhile, several wallets linked to Sun deposited 2,590 BTC ($156.5 million) to Binance, raising further speculation.
Amid these transactions, BiT Global’s recent partnership with BitGo, aimed at advancing ‘multi-jurisdictional and multi-institutional custody,’ has stirred decentralization concerns within the community.
In response, Sun clarified his role, stating, “My personal involvement in WBTC is entirely strategic. I do not control the private keys to the WBTC reserves and cannot move any BTC reserves.” He added that his goal is to support projects focused on decentralization, security, and safety, highlighting WBTC’s importance in the DeFi ecosystem.
Sun On More Controversy
Sun is also under scrutiny for the removal of 12,000 Bitcoin (worth $729 million) backing USDD, a stablecoin managed by the Tron DAO Reserve. Some have accused Sun of acting without community consent.
But he defended the move, explaining that USDD’s mechanism allows for such withdrawals when collateral exceeds the system’s specified amount. He emphasized that USDD maintains a long-term collateralization rate exceeding 300%.
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