On Wednesday, World Liberty Financial, a company supported by the family of U.S. President-elect Donald Trump, executed a $10 million swap of Coinbase’s cbBTC for WBTC. This move follows Coinbase’s controversial decision to delist WBTC after its September launch, triggering a lawsuit from BiT Global, the custodian involved with WBTC, who sought to prevent the delisting. The legal challenge was dismissed by a court on the same day as the token swap.
Wrapped bitcoin (WBTC) allows bitcoin to be used in decentralized finance (DeFi) applications across various blockchains. Coinbase introduced its version, cbBTC, as an alternative, but the exchange’s decision to remove WBTC from its platform prompted World Liberty Financial to make the switch. The company, which has also been active in acquiring other tokens like Aave (AAVE), Chainlink (LINK), and Ethena (ENA), has not publicly explained the reasons behind its token swap, but blockchain data shows the move was substantial.
Justin Sun, founder of the Tron blockchain and a highly influential figure in the crypto world, recently joined World Liberty Financial as an adviser. Sun’s involvement came after he acquired a $30 million stake in the company in exchange for WLFI tokens. His links to BiT Global, particularly through the Tron ecosystem, were cited by Coinbase in its decision to delist WBTC. Sun, who faces accusations of fraud and market manipulation in the U.S. (which he denies), had his connections with BiT Global become a key part of the ongoing legal and regulatory debates around wrapped bitcoin.
Despite not being directly involved in the management of WBTC, Sun’s influence has been felt through BiT Global’s role as a custodian of the token. The Hong Kong-based firm is working to decentralize the control of WBTC, and some board members of BiT Global have voiced support for Sun’s involvement, citing the strong performance of the Tron blockchain and its significant market share in the stablecoin sector. As the situation unfolds, World Liberty Financial’s actions highlight the evolving dynamics of wrapped bitcoin and its future in the crypto ecosystem.
