Justin Sun, the founder of Tron (TRX) and a prominent figure in the crypto space, has recently voiced strong criticism of Coinbase’s Bitcoin equivalent, cbBTC.
In a recent statement, Sun questioned the transparency and decentralization of cbBTC, specifically pointing out the lack of proof of reserves and the absence of audits.
Sun also claimed that Coinbase has the ability to freeze balances at any time and raised concerns about the centralization risks inherent in cbBTC. He stated, “cbBTC lacks Proof of Reserves, has no audits, and can freeze anyone’s balance at any time. This is essentially just a matter of ‘trusting us’.” Sun further suggested that the U.S. government could potentially seize all related Bitcoin with any court subpoena.
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Referring to cbBTC as a “central bank Bitcoin,” Sun’s criticism comes amid growing discussions about his involvement in the Wrapped Bitcoin (WBTC) governance.
He concluded his criticism by emphasizing the stark contrast between Bitcoin’s principles and what cbBTC represents:
“There is no more absurd combination than bringing together central banks and Bitcoin. I believe this is a day Satoshi Nakamoto could never have imagined when he created Bitcoin.”
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