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crypto.news 2025-01-23 11:24:14

Justin Sun fires shots at Coinbase as Trump-affiliated World Liberty Financial picks wBTC over cbBTC

World Liberty Financial’s adoption of wBTC over Coinbase’s cbBTC drew praise from Justin Sun, who accused the exchange of unreliable custody practices. The tension between Coinbase and TRON ( TRX ) founder Justin Sun is heating up as Sun calls out the exchange’s centralized approach to its tokenized Bitcoin product, cbBTC. Sun took aim at Coinbase’s proof of reserves, blasting the system as insufficient and backing Trump-linked World Liberty Financial for choosing Wrapped Bitcoin ( wBTC ) over Coinbase Wrapped ( cbBTC ) for its Bitcoin reserves. Let me break down this 4D chess move for you. Why did the president choose WBTC as his BTC reserve instead of keeping it on Coinbase or as CBBTC? The answer is simple: not your keys, not your coins! Relying on Coinbase’s 0 Proof of Reserves (PoR) product means your BTC could… https://t.co/Qo5c4wy9Tr — H.E. Justin Sun 🍌 (@justinsuntron) January 23, 2025 In a Jan. 23 post on X, Sun highlighted the risks of relying on Coinbase’s custodial services, arguing that Bitcoin reserves under cbBTC could be frozen or confiscated at the discretion of the exchange. “Not your keys, not your coins!” Sun wrote, highlighting the importance of decentralized ownership. You might also like: World Liberty Financial reallocates assets ahead of Trump’s inauguration The TRON founder also warned of potential bias in Coinbase’s operations, claiming that access to funds could hinge on individual relationships with the exchange’s legal team. As of press time, Coinbase hasn’t publicly responded to Sun’s remarks. Sun’s remarks come shortly after reports revealed that WLF made on-chain purchases of WBTC, a product issued by BitGo. In late 2024, BitGo came under scrutiny following the announcement that Sun would be involved in a joint venture with BiT Global (a Bithumb company) and BitGo to manage wBTC products. Data from Arkham Intelligence reveals that an address linked to WLF holds $56.4 million in WBTC, with Ethereum ( ETH ) topping the list at over $181 million. There are no public records indicating that WLF holds cbBTC. Read more: TRX price double bottoms as Justin Sun recommends buying the dip