Coinbase founder and CEO Brian Armstrong has denied claims that the company sold its wrapped Bitcoin, cbBTC, to BlackRock and did not maintain a 1:1 backing. These accusations sparked debate in the crypto community, with some accusing Coinbase of lacking transparency regarding its Bitcoin reserves. In a statement posted on X addressed to crypto analyst Tyler Durden, Armstrong explained that Bitcoin minting and burning for BlackRock's spot Bitcoin ETF are both transparent and on-chain. Durden had shared Cryptoquant data showing Coinbase as the largest buyer and seller during market highs and lows. He further implied that the exchange allowed BlackRock to borrow Bitcoin without providing collateral. As BlackRock is one of the largest Bitcoin holders globally, the analyst suggested that the two companies could be profiting by controlling Bitcoin price movements. Armstrong also noted that Coinbase cannot share its institutional clients' wallet addresses due to privacy concerns. Bloomberg ETF analyst Eric Balchunas also refuted these allegations, adding that the ETF provided by BlackRock helped stabilize Bitcoin prices during market volatility. Additionally, Armstrong acknowledged that cbBTC is backed by a centralized custodian, which in this case is Coinbase itself. (CryptoPotato)