Cryptocurrency influencer Justin Sun has launched a scathing attack on Coinbase’s wrapped Bitcoin (cbBTC) token, labeling it as a “central bank Bitcoin” and raising concerns about its security and decentralization.
In a statement, Sun criticized cbBTC for lacking proof of reserve, audits, and the potential for freezing user balances at any time. He argued that this centralized control undermines the core principles of Bitcoin, which was designed to be decentralized and free from government interference.
“cbBTC is essentially ‘trust me,'” Sun stated. “Any U.S. government subpoena could seize all your BTC. There’s no better representation of central bank Bitcoin than this. It’s a dark day for BTC.”
Sun also warned DeFi protocols against integrating cbBTC, citing the potential security risks associated with its centralized nature. He emphasized that a single government subpoena could freeze on-chain Bitcoin instantly, making decentralization a “joke.”
The controversy surrounding cbBTC intensified after allegations surfaced that Sun had joined the token’s management. While these allegations have not been officially confirmed, they have further fueled concerns about the token’s centralization and potential conflicts of interest.
