On Wednesday, World Liberty Financial, a firm linked to the family of U.S. President-elect Donald Trump, swapped approximately $10 million worth of cbBTC, Coinbase’s version of wrapped bitcoin, for WBTC, a competing wrapped bitcoin token.

Wrapped bitcoin (WBTC) allows Bitcoin to be used on other blockchains, particularly in decentralized finance (DeFi). Coinbase introduced cbBTC in September but announced its plans to delist WBTC in November, citing its listing requirements. In response, BiT Global, a major custodian for WBTC, filed a lawsuit seeking to stop Coinbase from removing the token, but the court ruled against BiT Global on Wednesday.

Adding another layer to the situation is Justin Sun, the founder of the Tron blockchain and one of CoinDesk’s most influential figures of 2024. Coinbase’s decision to delist WBTC was partly driven by its concerns over BiT Global’s association with Sun, who is facing U.S. allegations of fraud and market manipulation—charges he denies. Sun, after purchasing a $30 million stake in World Liberty Financial, also took on an advisory role with the company.

While World Liberty Financial has not publicly commented on the token swap, blockchain data shows that the company has been actively trading, including acquiring significant amounts of Aave (AAVE), Chainlink (LINK), and Ethena (ENA), all tied to partnerships or integrations with the firm.

Sun’s direct involvement with WBTC is limited. In August, BitGo, the primary custodian of the Bitcoin backing WBTC, announced plans to decentralize the custody process by including three global entities, including BiT Global. BiT Global, based in Hong Kong and registered as a Trust and Company Service Provider (TCSP), operates as a key partner with BitGo and the Tron ecosystem.

Although Sun is not on BiT Global’s cap table or a listed shareholder, some board members believe that his involvement could ultimately benefit WBTC. Robert Liu, a BiT Global board member, pointed out the success of the Tron blockchain, which holds over 50% of the global market share and maintains a high turnover rate, making it a trustworthy network for the circulation of stablecoins.