Poloniex WBTC depegs threatening Justin Sun’s empire

Poloniex, a Justin Sun-owned exchange, offers a wrapped bitcoin (WBTC) product on Tron that is currently trading at a more than 20% discount on Poloniex. 

The WBTC pair traded against BTC on Tron has WBTC worth only 79% of BTC, currently on 0 volume over the last 24 hours.

Poloniex has previously refused to disclose to Protos where it holds the bitcoin for this WBTC product and has yet to complete a promised ‘proof-of-reserves.’ Protos has again reached out to Poloniex to attempt to determine where the reserves for this product are held, what the timeline is for the exchange to finish its promised proof-of-reserves, and for clarification on the relationship between Sun-owned Poloniex and Sun-advised HTX.

Poloniex proof-of-reserves and WBTC backing missing

Read more: Where is Justin Sun’s money?

The last part is important because the WBTC on Tron product offered by Poloniex is a massive portion of the bitcoin held at HTX, formerly Huobi. 

The most recent proof-of-reserves provided by HTX reveals that over half of all bitcoin on HTX is this WBTC on Tron product, representing over 14,400 bitcoins worth almost $900 million.

There are other connections between Poloniex and HTX, including the fact that the Poloniex support website hosts a page for the ‘Huobi Platform User Agreement.’

HTX and Poloniex are not the only Sun-connected entities exposed to this WBTC on Tron product, with JustLend having nearly 92k bitcoins worth approximately $5.6 billion.

To summarize: JustLend, Poloniex, and HTX are all exposed to this WBTC on Tron product that currently is trading at a massive discount and whose issuer refuses to disclose where the reserves for the product are held.

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