BitGo CEO responds to WBTC project controversy: Willing to assist Maker DAO in due diligence to alleviate community concerns

BitGo previously announced that it would become a minority shareholder in a new joint venture with Hong Kong-based BiT Global to provide “multi-jurisdictional and multi-institutional custody” for WBTC operations. The company also described the move as a “strategic partnership” between BitGo and Tron founder Justin Sun. Sun’s participation in the venture was subject to a 60-day transition period, which allowed Block Analitica Labs, the risk management team of Maker DAO, to propose a proposal on Maker’s governance forum to prevent new borrowing against WBTC collateral. BA Labs co-founder Monetsupply wrote: "Overall, we find that Sun Yuchen as a controlling shareholder in the newly formed WBTC joint venture presents unacceptable risks." BitGo CEO Mike Belshe downplayed the impact of Sun Yuchen's participation in the joint venture in an interview, emphasizing BitGo's long-term commitment to security. "BiT Global has a whole team of people managing multiple customer accounts, and they have a responsibility to keep them properly. They can't lend funds, and they can't give funds to Sun Yuchen, me, or anyone else at will, otherwise they will violate the law and go to jail. In terms of certification, we have always had wbtc.network, which will continue to operate." While some users in the crypto community have proposed decentralized alternatives to WBTC, Belshe believes that such products are risky. "DeFi products are not so decentralized. What happens if they decide to start earning returns and taking risks? So the structure we created is not legally allowed to do this. This is what makes it unique. It also makes it more expensive to run." As for Maker DAO, Belshe said he was willing to assist with due diligence to alleviate any concerns. (The Block) Yesterday, BitGo and BiT Global jointly established a joint venture to expand WBTC's custody and cold storage services to multiple jurisdictions. BitGo will participate as a minority shareholder in the new joint venture. The change will be seamless and transparent to the WBTC community, and the transition period is expected to be 60 days. The new solution will apply BitGo's multi-signature and cold storage technology that has been used to protect Bitcoin since 2019 to ensure asset security. As for some of the community's concerns about Sun Yuchen's participation in the project, he responded that participating in the WBTC project only provides strategic support and does not affect the project's security and decentralized core.