Donald Trump’s crypto venture, World Liberty Financial, swapped $10 million worth of wrapped Bitcoin (cbBTC) for tokens tied to its project adviser, Justin Sun.
On-chain data from Nansen confirms that yesterday, the project’s wallet exchanged all 103 cbBTC tokens for WBTC, the first major wrapped Bitcoin token.
Promoted as a decentralized finance (DeFi) lending platform, World Liberty isn’t even fully operational yet. Wrapped Bitcoin like cbBTC and WBTC allows Bitcoin holders to access DeFi applications on Ethereum.
Justin, meanwhile, responded to the speculations, saying, “This is their own financial choice. I have nothing to do with it.”
Justin Sun’s role and financial involvement
Justin, a controversial crypto billionaire, joined the World Liberty project in November after investing $30 million. His investment reportedly pushed the venture to a stage where Trump could begin to profit from the business.
Known for stunts like spending $6.2 million on a banana duct-taped to a wall, Justin has faced both praise and criticism in the blockchain space. But his involvement in World Liberty isn’t his only tie to wrapped Bitcoin.
In August, BitGo, the custody firm behind WBTC, partnered with BiT Global, a Hong Kong-based firm with connections to Sun. This collaboration stirred controversy. Coinbase reacted by delisting WBTC and launching its own wrapped Bitcoin version, cbBTC.
BiT Global sued Coinbase earlier this month over the delisting, arguing the move hurt its business. Coinbase defended its decision, citing risks from Sun’s “potential control” over WBTC. A federal judge sided with Coinbase, rejecting BiT Global’s request to reverse the delisting.
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