Tron Founder Attacks Coinbase’s cbBTC Over Transparency Issues

Justin Sun, founder of Tron and a prominent figure in the cryptocurrency world, has voiced strong criticisms of Coinbase's Bitcoin counterpart, cbBTC.

In a recent statement, Sun questioned cbBTC’s transparency and decentralization, highlighting concerns about the absence of proof of reserves and auditing.

Sun argued that Coinbase’s cbBTC poses significant centralization risks, as it lacks proof of reserves and the ability to audit, while also having the power to freeze balances at any time. He remarked that this setup essentially relies on a “trust me” approach and suggested that a US government subpoena could result in the seizure of all associated Bitcoin.

Sun described cbBTC as “central bank Bitcoin” and criticized it for contradicting Bitcoin’s core principles. He expressed that the combination of central banks and Bitcoin is fundamentally flawed, stating that it’s a scenario Satoshi Nakamoto could never have envisioned when creating Bitcoin.

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Sun’s comments come amid ongoing controversy surrounding his alleged role in the management of Wrapped Bitcoin (WBTC).

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.