Trump-Backed World Liberty Financial Gives Embattled wBTC a Vote of Confidence

Justin Sun is already seeing benefits from his $30 million investment in the Donald Trump-backed DeFi project World Liberty Financial.

The same day a judge refused to stop Coinbase from delisting wrapped bitcoin “due to the unacceptable risk that control of wBTC would fall into the hands of Justin Sun,” WLFI gave the embattled token a very pointed vote of confidence.

Lookonchain reported on Dec. 18 that WLFI had sold its entire $10.4 million holding of Coinbase’s competing cbBTC and purchased 103.15 wBTC.

Wrapped bitcoin is a form of the No. 1 cryptocurrency that can be used on Ethereum for decentralized finance (DeFi). It is the top wrapped bitcoin product on the Ethereum blockchain.

Tron-founder Sun’s purchase of more than half of the total extant WFLI tokens in late November got him appointed an advisor to World Liberty Financial the next day, giving him a foothold on the incoming President’s pet crypto project.

Sun’s “insights and experience will be instrumental as we continue to innovate and grow,” WLFI said at the time.

Sun is also known for his high-profile and high-dollar publicity stunts, most recently eating a $6.2 million banana that was part of an art installation he’d purchased.

Hard to Pin Down

Sun’s connection to wBTC is a bit hard to pin down. BitGo, the custodian of wBTC’s Bitcoin collateral, entered into a partnership with BiT Global, Tron and Justin Sun. BiT Global would share the custody duties, which alarmed Coinbase enough to wBTC off its platform, according to its court filing. Sun and BiT Global promptly sued for $1 billion in damages.

On Dec. 18, the judge in the case refused BiT Global’s request for an emergency stay that would have prevented Coinbase from delisting wBTC.

Sun has been equally skeptical of cbBTC, pointing to its centralized control. “There is no better representation of central bank Bitcoin than this,” Sun said on Sept. 12. “It’s a dark day for BTC.”