Protos reports that crypto exchange HTX, which is advised by Tron founder Justin Sun, has redeemed roughly 7,300 wrapped bitcoin (WBTC) for native BTC despite showing no WBTC at all in its published proof-of-reserves or on-exchange trading activity. The redemptions occurred in two large batches: about 5,182 BTC worth of WBTC on November 24 and a further 2,166 BTC on December 1, all processed by the WBTC issuer in around five hours each. These transactions were routed to two main Bitcoin addresses that are also absent from HTX’s proof-of-reserves disclosures, and the total redeemed equals about one-third of all BTC that HTX claims in those reserves. The episode raises sharp questions about HTX’s transparency and asset accounting. Protos highlights that HTX’s proof-of-reserves reports show no WBTC balances and do not include the recipient BTC addresses, suggesting HTX had access to significant WBTC positions that were never publicly disclosed as customer or platform assets. The fact that these unusually large and fast-tracked redemptions were processed by the WBTC system while ordinary users can wait up to two weeks for redemption intensifies scrutiny of Sun’s influence over WBTC infrastructure and custody. This follows earlier controversy around BitGo’s August 2024 announcement of a WBTC custody joint venture with Justin Sun and the Tron ecosystem, which coincided with a surge in WBTC redemptions amid declining trust. HTX did not respond to Protos’ questions at press time, leaving open concerns about whether the exchange’s reserves and Sun-linked wrapped bitcoin products are being managed off-balance sheet or with preferential treatment compared with regular market participants.

AI-generated background, compiled from web sources — not editorial content.

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