World Liberty Financial's Major Coin Share Exchange: From cbBTC to WBTC Amid Justin Sun's Influence

In a significant portfolio transition that underscores shifting dynamics within the crypto custodian space, World Liberty Financial—an entity affiliated with the Trump family—converted approximately $10 million worth of Coinbase-issued cbBTC into WBTC (Wrapped Bitcoin). This coin share exchange, completed on-chain in December 2024, reflects broader tensions surrounding wrapped bitcoin custodian preferences and the complex web of institutional relationships shaping the DeFi ecosystem. The move arrived amid a pivotal court decision and Justin Sun’s expanding influence across multiple crypto platforms.

The $10 Million Coin Share Shift: Exchange Mechanics and Timing

The transition of World Liberty Financial’s coin share from cbBTC to WBTC involved converting 102.9 cbBTC tokens into 103.15 WBTC—a near-equivalent exchange at favorable rates. This rebalancing occurred on the same day a court dismissed BiT Global’s legal challenge against Coinbase, a significant moment in the ongoing custody debate.

Coinbase introduced cbBTC in September 2024 as its proprietary alternative to WBTC, positioning it as a native wrapped bitcoin solution optimized for its ecosystem. By November, the exchange announced plans to delist WBTC from its platform, citing alignment with its listing standards. This move triggered immediate pushback from BiT Global, a custodian entity involved in WBTC’s governance structure, which sued Coinbase to prevent the delisting. The court’s rejection of BiT Global’s injunction cleared the path for Coinbase’s delisting strategy, creating exactly the kind of market uncertainty that World Liberty Financial’s coin share adjustment addressed.

Justin Sun’s Central Role: From Custody Controversy to Advisory Position

The intersection of Justin Sun, Tron founder and polarizing crypto figure, with World Liberty Financial reveals the intricate politics of wrapped bitcoin custody. Sun became an adviser to World Liberty Financial after acquiring a $30 million stake in WLFI tokens in November 2024, cementing his position within Trump’s crypto venture.

Sun’s involvement in the broader wrapped bitcoin conversation stems from his connection to BiT Global, where he functions as a strategic partner rather than a direct shareholder. BitGo, which originally created and maintained exclusive custody of WBTC, distributed control to three entities globally in August 2024—including BiT Global—to reduce single-point-of-failure risks. Hong Kong-registered BiT Global emerged as a “strategic partnership between BitGo, Justin Sun, and the Tron ecosystem,” according to official announcements.

Coinbase explicitly flagged Sun’s associations as problematic, citing his history of facing fraud and market manipulation accusations from U.S. regulators (allegations Sun denies). The exchange characterized these connections as an “unacceptable risk” to platform integrity—a rationale that shaped its delisting strategy and created openings for alternatives like cbBTC. The court’s decision validated Coinbase’s stance indirectly, effectively siding with its risk assessment.

Market Activity Following the Coin Share Transition

Beyond the WBTC-to-cbBTC shift, World Liberty Financial demonstrated aggressive portfolio positioning in the week following its major coin share conversion. On-chain monitoring revealed acquisitions of millions in AAVE tokens (currently trading at $118.02 with a -0.98% 24-hour change), Chainlink’s LINK tokens ($9.19, +6.85%), and Ethena’s ENA tokens ($0.11, +6.00%). These purchases align strategically with partnerships or integrations World Liberty Financial has pursued, suggesting deliberate ecosystem positioning rather than speculative positioning.

Market Recovery and Altcoin Momentum

As custody tensions occupied institutional attention, Bitcoin demonstrated technical resilience, rebounding toward $67,950 following weeks of selling pressure. This recovery catalyzed a broader altcoin rally, with Ethereum climbing to $2,050 (+5.86%), Solana reaching $87.77 (+6.22%), Dogecoin advancing to $0.10 (+6.36%), and Cardano pushing toward $0.30 (+9.89%). The rebound appeared driven primarily by technical factors—specifically, short-covering and thin liquidity rather than fresh fundamental catalysts.

Market observers emphasized caution about the rally’s durability. Resistance levels at $72,000 and $78,000 represented critical decision points for Bitcoin; sustained breaks above these thresholds would signal structural bullishness rather than temporary relief bouncing. Some market participants attributed the altcoin enthusiasm to fund rotation strategies and options positioning, though conviction behind the move remained contested.

The Bigger Picture: Wrapped Bitcoin’s Custody Decentralization

Sun’s relatively limited direct control over WBTC contrasts with Coinbase’s characterization of his involvement as inherently problematic. Board member Robert Liu maintained in October that Sun’s participation actually benefits WBTC, citing Tron’s market dominance (claiming over 50% global market share) and its role hosting $60+ billion in stablecoin assets. This perspective highlights the philosophical divide about custody models: whether decentralization inherently improves the system or whether operational risk concentrates differently under distributed governance.

The coin share transition by World Liberty Financial thus represents more than a tactical rebalancing. It reflects institutional preferences crystallizing around Coinbase’s proprietary solution, the lingering consequences of regulatory pressure on entities connected to controversial figures, and the ongoing evolution of wrapped bitcoin standards in DeFi infrastructure.