BitGo transfers WBTC ownership to joint venture with BiT Global, Justin Sun’s role sparks controversy

Wrapped Bitcoin (WBTC), a Bitcoin-backed token on Ethereum, will soon be under new ownership, with digital asset trust company BitGo becoming a minority partner in a joint venture with Hong Kong-based cryptocurrency custody firm BiT Global, according to The Block. This transition, described as a strategic partnership involving TRON founder Justin Sun, has sparked controversy about centralization, leading MakerDAO's risk management team to propose halting new borrowing against WBTC collateral. BitGo CEO Mike Belshe downplayed Sun's role, emphasizing the security protocols in place and assuring that private keys controlling WBTC reserves remain secure. Sun also clarified via X that his involvement in WBTC is “entirely strategic,” with no control over the private keys for the WBTC reserves and therefore cannot move any of the Bitcoin reserves.