The memo
REJECTED. FBTC (Function Network's Bitcoin-backed omnichain asset, unrelated to Fidelity's spot Bitcoin ETF that trades under the same ticker) follows the same custodial structure as WBTC and BTCB, both already rejected in this registry: BTC held by named custodians, minted 1:1 by KYB-gated Merchants, with retail exit only through secondary markets. A three-member Security Council of Mantle, Antalpha Prime, and Cobo oversees custody through threshold-signature and MPC techniques, which is a more explicit role separation than WBTC discloses, but this review could not confirm the exact approval threshold among the three parties, and no independent, third-party proof-of-reserves attestation was found. Absence of a named scandal does not offset an unconfirmed custody threshold and no independent reserve verification — this is a standing disclosure gap, not a temporary evidence gap.
What would reopen the file
- An independent, third-party proof-of-reserves attestation for FBTC is published on a recurring basis
- The exact Security Council or TSS approval threshold is publicly confirmed and shown to require genuine multi-party consensus with no single-party override path
- A permissionless or clearly disclosed, non-discriminatory redemption path is demonstrated for non-institutional holders
- Twelve consecutive months with no custody, freeze, or minting-irregularity incident following threshold confirmation
Facts on file
- Verdict
- Rejected
- Exposure
- other
- Chains examined
- Ethereum
- Instruments
- FBTC
- Memo version
- v1
- Reviewed
- Next review