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08/10/2024

BitGo Set to Transition Wrapped Bitcoin Operations to Multi-Jurisdictional Custody

Crypto custody platform BitGo is set to transition its Wrapped Bitcoin (WBTC) operations to a multi-jurisdictional, multi-institutional custody structure to strengthen its security efforts. Currently, BitGo's WBTC custody and cold storage operations are conducted exclusively in the United States. However, per an August 9 announcement, the company has begun a 60-day transition period to diversify the custody locations and jurisdictions for the underlying Bitcoin, including Hong Kong and Singapore. WBTC represents Bitco

BitGo Set to Transition Wrapped Bitcoin Operations to Multi-Jurisdictional Custody

Crypto custody platform BitGo is set to transition its Wrapped Bitcoin (WBTC) operations to a multi-jurisdictional, multi-institutional custody structure to strengthen its security efforts.

Currently, BitGo's WBTC custody and cold storage operations are conducted exclusively in the United States. However, per an August 9 announcement, the company has begun a 60-day transition period to diversify the custody locations and jurisdictions for the underlying Bitcoin, including Hong Kong and Singapore.

WBTC represents Bitcoin and allows users to interact with Ethereum-based decentralized finance protocols and decentralized exchanges.

BitGo commits to the same multi-sig technology

BitGo stated that the transition of WBTC operations will make it "the world's first multi-jurisdictional, multi-institutional custody platform" through an exclusive partnership and joint venture with BiT Global.

The custody platform affirmed it will continue using the same multi-signature technology and deep cold storage, but keys can now be distributed across multiple locations worldwide, minimizing the risk of a single point of failure.

The transition will also proceed "smoothly and transparently," with an expected completion date of October 8. A key point emphasized and confirmed by BitGo's CEO is the involvement of Tron Network and its founder, Justin Sun, in the development process.

Tron and Justin Sun's involvement

BitGo CEO Mike Belshe confirmed in an August 10 post on X that the joint venture's partners include BitGo, Justin Sun, and the Tron ecosystem. He stressed that Tron founder Justin Sun would not "have the ability to move funds." This comes amid an ongoing lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against him.

"We've been transparent about his name," Belshe added.

In April 2024, Cointelegraph reported that Tron asked a federal court in New York to dismiss the SEC's lawsuit against it, arguing that the regulator was targeting "primarily foreign conduct."

"The SEC is not the global regulator," Tron declared roughly one year after the lawsuit was first filed.

Related news: Poisoned WBTC address returned nearly all funds to the victim following negotiations

In March 2023, the SEC filed a civil lawsuit against Sun, the Tron Foundation, the BitTorrent Foundation, and Rainberry over the "unregistered offering and sale, manipulative trading, and illegal promotion" of Tron as a crypto security asset.

The regulator alleged that Sun engaged in "wash trading manipulation" by helping boost public interest in TRX and BitTorrent with the help of celebrities including Soulja Boy, Lindsay Lohan, Jake Paul, and Akon.

Cointelegraph reached out to Tron Network for comment but had not received an immediate response at the time of publication.