Tron Founder Slams Coinbase’s cbBTC, Warns DeFi of Risks

• Justin Sun criticizes Coinbase’s cbBTC for lacking proof-of-reserve and posing security risks.  
• Sun warns cbBTC allows Coinbase to freeze or blacklist user balances at any time.  
• cbBTC integration could jeopardize decentralized finance, exposing users to potential government interference.

Tron founder Justin Sun has criticized Coinbase’s newly launched wrapped Bitcoin variant, cbBTC, highlighting its centralized control features that could jeopardize decentralized finance (DeFi).

Sun argues that cbBTC, designed to mirror Bitcoin on the Ethereum blockchain, lacks proof-of-reserve, independent audits, and empowers Coinbase to freeze user balances at will. He claims this poses serious risks to DeFi users. His comments came in response to a post that exposed cbBTC’s centralized nature, showing Coinbase’s ability to freeze and blacklist addresses directly through the smart contract.

Mincing no words, the crypto billionaire slammed Coinbase’s control over cryptocurrency goes against the decentralized ethos of Bitcoin and DeFi. He compared cbBTC’s centralized control to BitGo’s wrapped Bitcoin (wBTC), which lacks the capability to freeze or blacklist …

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