Justin Sun’s Massive BTC Transfer Sparks Controversy in Crypto Community
Justin Sun caused panic on crypto Twitter by transferring $156.4 million worth of BTC after BitGo announced a WBTC custody change. According to EmberCN and Wu Blockchain news, a total of 2,590 Bitcoins ($156.41 million) were transferred to Binance from the suspected Justin Sun team address. Subsequently, a newly created address began withdrawing WBTC from Binance, with 1,953 WBTC ($117.78 million) already withdrawn.
Suspicious Transactions and Speculations
Blockchain intelligence platform Arkham shows a series of transfers in progress. At 17:22 UTC on August 19, 2024, Sun’s address transferred significant amounts of BTC to Binance, sparking speculation. These large transactions, totaling over $100 million, raised concerns within the crypto community, especially after BitGo announced changes to WBTC’s custody model.
At around 18:38 UTC, additional BTC worth millions were transferred to the Binance hot wallet, further fueling the controversy. The timing of these transactions, coupled with the custody change announcement, led to widespread speculation about Sun’s motives and intentions.
BitGo’s Custody Change and Reactions
BitGo recently announced changes to WBTC’s custody model, which involved spreading influence across multiple players and jurisdictions. Following this announcement, Sun’s involvement in large BTC transfers to Binance raised eyebrows and triggered backlash from users. MakerDAO also made a significant decision to ban future lending in Wrapped Bitcoin (WBTC) after BitGo’s announcement.
The cryptocurrency community continues to monitor the situation closely, with many questioning the motivations behind Sun’s actions and the potential impact on the WBTC ecosystem. As the controversy unfolds, the industry awaits further developments and clarifications regarding the recent transactions and custody changes.
