BitGo is transitioning its Wrapped Bitcoin business to a multi-jurisdictional custody structure, expanding operations beyond the U.S. to Hong Kong and Singapore.
BitGo, a cryptocurrency custody platform, intends to enhance its security measures by transitioning its Wrapped Bitcoin business to a multi-institutional and multi-jurisdictional custody structure.
At present, BitGo’s Wrapped Bitcoin (WBTC) custody operations and cold storage are exclusively located in the United States.
Nevertheless, the company has initiated a 60-day transition period to expand its custodial locations and jurisdictions for the underlying Bitcoin to include Hong Kong and Singapore, as indicated in a statement issued on August 9.
WBTC is a representation of Bitcoin that facilitates communication with Ethereum-based DeFi protocols and decentralized exchanges (DEXs).
BitGo Guarantees Utilization of The Same Multisig Technology.
BitGo asserted that the transition of its WBTC business will result in it becoming “the world’s first multi-jurisdictional and multi-institutional custody through a unique partnership and joint-venture with BiT Global.”
The custody platform has confirmed that it will continue to employ the same “deep cold storage and multi-signature technology.” However, the risk of a single point of failure has been mitigated by the ability to disseminate keys in multiple locations worldwide.
Additionally, it was declared that the transition will be “both transparent and frictionless,” with the completion date of October 8. The involvement of Tron Network and its founder, Justin Sun, in the development was a critical point that was emphasized and reemphasized by BitGo’s CEO.
Justin Sun and Tron’s involvement
In an Aug. 10 X post, BitGo CEO Mike Belsche acknowledged that the Tron ecosystem, Justin Sun, and BitGo are all involved in the partnership for this joint venture.
He reiterated that Justin Sun, the founder of Tron, will not “have the ability to move funds.” This occurs in the context of the ongoing litigation initiated by the US Securities and Exchange Commission against him.
Belshe further stated, “We ensured that his name was explicitly stated.”
In April 2024, Cointelegraph reported that Tron requested that a federal court in New York dismiss the US Securities and Exchange Commission litigation against it, contending that the U.S. regulator is focusing on “predominantly foreign conduct.”
Tron asserted that the Securities and Exchange Commission (“SEC”) is not a global regulator approximately one year following the lawsuit’s inception.
The SEC filed a civil lawsuit against Sun, the Tron Foundation, the BitTorrent Foundation, and Rainberry in March 2023 for the “orchestration of the unregistered offer and sale, manipulative trading, and unlawful touting” of Tron as a crypto asset security.
The financial regulator claimed that Sun was involved in “manipulative wash trading” by utilizing celebrities such as Soulja Boy, Lindsay Lohan, Jake Paul, and Akon to generate public interest in TRX and BitTorrent (BTT).
