Yahya 
Following the company’s recent move to diversify its custodial jurisdictions, BitGo CEO Mike Belshe has dismissed worries over Justin Sun’s participation in its Wrapped Bitcoin (WBTC) business. BitGo said on Aug. 9 that WBTC, the Bitcoin underpinning, will henceforth be kept outside of the US at Singapore and Hong Kong. This action is a part of a strategic alliance with the Tron ecosystem and its CEO, Justin Sun, along with a joint venture incorporating BiT Global located in Hong Kong.
Security and Transparency Under Scrutiny
Particularly from risk management company Block Analitica Labs (BA Labs), which cautioned of “elevated levels of risk” resulting from Sun’s engagement, the statement has attracted questions. BA Labs noted that various Sun-affiliated crypto initiatives have had problems with operations and openness. In response, the company recommended an executive vote on the MakerDAO forum to cancel all new WBTC loans and stop further borrowing against WBTC collateral.
Belshe, however, brushed off these worries, implying that the debate results more from Sun’s reputation than from any accurate problems. He reassured us that BitGo is co-signing all transactions using its current technology while WBTC’s security mechanisms remain unaltered. According to Belshe, separating custodial keys across many people actually improves security rather than compromises it.
Justin Sun also addressed the matter, underlining his solely strategic function and his lack of access to the WBTC funds. He underlined once again how strong and unaltered the security mechanisms—including offline keys and BitGo’s cold wallet technology—remain.
Scheduled on Aug. 12, the planned executive vote by BA Labs will decide whether MakerDAO would implement the suggested adjustments to its WBTC ownership in view of these events.
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