Odaily News Coinbase founder and CEO Brian Armstrong has denied claims that the company has sold its wrapped Bitcoin cbBTC to BlackRock and does not maintain 1:1 backing. The allegations have sparked debate in the crypto community, with some accusing Coinbase of a lack of transparency regarding its Bitcoin reserves. In a statement to crypto analyst Tyler Durden published on X, Armstrong explained that the Bitcoin minting and destruction of the BlackRock Spot Bitcoin ETF is transparent and on-chain. Durden shared Cryptoquant data showing 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's price movements. Armstrong also noted that Coinbase cannot share the wallet addresses of its institutional clients for privacy reasons. Bloomberg ETF analyst Eric Balchunas also denied the doubts, adding that the ETF provided by BlackRock has 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)