BitGo Reaffirms Independence from Justin Sun and Tron Amid MakerDAO Decision
Date: 2024-08-15 Author: Oliver Abernathy Categories: BUSINESS
During a recent online discussion, BitGo CEO Mike Belshe reiterated wBTC’s independence from Justin Sun’s influence, despite the involvement of BiT Global, which is partly owned by the Tron founder. During the discussion on X Spaces, Belshe noted that Sun does not have access to the keys to the assets held by the crypto custodian.
These statements come after MakerDAO, the issuer of the DAI stablecoin, decided to reduce its investment in wBTC amid concerns that the proposal to co-own the assets with BiT Global could lead to excessive centralization of control in the hands of BiT Global, which is affiliated with Justin Sun.
During the discussion, Belshe clarified that the keys to the assets will be distributed between BitGo's US and Singapore operations, as well as BiT Global. He emphasized that no single party has the ability to issue or steal assets from the fund on its own. According to Belshe, the community's concerns were caused by a lack of understanding of the operational mechanics of key distribution.
Belshe also emphasized that Justin Sun is not an employee of BiT Global. This company, as Belshe explained, is organized as a public holding company in Hong Kong and has fiduciary obligations to ensure the safety of clients' assets. In accordance with local laws, no one person is allowed to own more than 20% of the company.
MakerDAO's resolution, which will become executable after 13:24 UTC on August 15, aims to stop using its wBTC vaults to provide liquidity. This will limit the ability to further borrow from these vaults, but existing positions will not be liquidated.
