Following BitGo’s recent overhaul of its Wrapped Bitcoin [WBTC] custody model, which aims to enhance security by distributing key control among BitGo Inc., BitGo Singapore, and BiT Global, whale activity has raised eyebrows.

Amid the controversy surrounding the token’s ownership, an anonymous wallet address has been observed amassing substantial amounts of Wrapped Bitcoin.

WBTC whale makes moves

On the 20th of August, Wu Blockchain reported a notable transfer of 2,590 BTC, worth $156.41 million, from an address associated with Justin Sun’s team, to the Binance [BNB] exchange.

Providing further insights on the matter, Wu Blockchain added, 

“Then a newly created address began to withdraw WBTC from Binance, 1,953 WBTC ($117.78M) have been withdrawn so far, according to @EmberCN.”

This development underscores ongoing tensions and shifts within the WBTC ecosystem, and also raises questions about the handling and movement of significant amounts of WBTC.

Previous whale transfers

Well, this isn’t the first time that such a whale transfer has taken place. On the 19th of August, Lookonchain reported that a whale accumulated 347 WBTC, worth $16 million, from Binance.

This accumulation is part of a larger trend, with the same whale having amassed a total of 1,953 WBTC, valued at $118 million, over the past week.

The transactions were executed at an average price of $58,853 per WBTC, highlighting a significant movement of assets amidst ongoing changes in the WBTC custody model. 

Remarking on the same, X (formerly Twitter) user SolBlock AI noted, 

“Nothing to see here, just crypto whales at play.” 

Adding to the fray, RyuzakiSOL said, 

“They are buying when new people are selling.” 

With substantial transfers and shifts in custody protocols, the landscape for WBTC is evolving rapidly. This has raised critical questions about market stability and asset management.

Source : AMBCrypto - Aug 21, 2024