Coinbase CEO responds to questions about lack of transparency in Bitcoin reserves, denies selling cbBTC to BlackRock

Odaily Odaily News Coinbase founder and CEO Brian Armstrong denied claims that the company had sold its wrapped Bitcoin cbBTC to BlackRock and did not maintain 1:1 support. The allegations have caused debate in the crypto community, with some accusing Coinbase of a lack of transparency in its Bitcoin reserves. In a statement to cryptocurrency analyst Tyler Durden published on X, Armstrong explained that the Bitcoin minting and destruction of the BlackRock Spot Bitcoin ETF are transparent and on-chain. Cryptoquant data shared by Durden showed that Coinbase was the largest buyer and seller at market highs and lows. In addition, he hinted that the exchange allowed BlackRock to borrow Bitcoin without providing collateral. Since BlackRock is one of the world's largest Bitcoin holders, the analyst said the two companies could profit by controlling Bitcoin price movements. Armstrong also pointed out that for privacy reasons, Coinbase cannot share the wallet addresses of its institutional clients. Bloomberg ETF analyst Eric Balchunas also denied these doubts, adding that the ETF provided by BlackRock helped stabilize the price of Bitcoin during market volatility. Furthermore, Armstrong acknowledged that cbBTC is backed by a centralized custodian, which in this case is Coinbase itself. (CryptoPotato)