HTX, the Justin Sun-advised crypto exchange, has been rapidly redeeming massive quantities of wrapped bitcoin (WBTC). This started on November 24 with HTX redeeming approximately 5,182 bitcoins and has continued with the additional redemption of 2,166 bitcoins on December 1.
Both of these transactions were unusual to observe, given that WBTC has no 24-hour volume on HTX.
Additionally, there is no WBTC included in the proof-of-reserves for HTX.
Furthermore, neither of the two bitcoin addresses that these redemptions largely ended up in, 1Fgpaz4kXyz35WKMGk2Yo19mR9pk3KC8zx and 1Apv2EuoHyCpKsxdFEPv5GSddqDMt3bTN6, are included in the proof-of-reserves.
Read more: Justin Sun’s USDD removes 12,000 BTC without DAO approval
Furthermore, the total amount redeemed, approximately 7,300 bitcoin, would represent approximately one-third of all bitcoin included in the HTX Proof-of-Reserves.
Despite these apparent issues with these redemptions, they have been processed quickly by WBTC, each in about five hours. Other WBTC users sometimes need to wait nearly two weeks for their redemptions to process.
This Sun-advised exchange redeeming assets it hadn’t previously disclosed may reignite the controversy around Sun’s involvement in the custody of WBTC. Especially as he has launched hypocritical criticisms at competitors.
Sun, for his part, has been cozying up to the United States president-elect, purchasing a massive stake in World Liberty Financial, the project endorsed by the sexual predator. Sun is also currently the target of a Securities and Exchange Commission lawsuit that alleges he engaged in wash-trading, price-manipulation, and hired celebrities without disclosure to sell securities he was selling without registration.
Protos reached out to HTX to clarify these issues, but at press, it had not responded.
