Coinbase CEO Denies Selling 'Paper Bitcoin' to BlackRock and Allegations About cbBTC

- Brian Armstrong, founder and CEO of Coinbase, has denied rumors that the company sold paper Bitcoin to BlackRock without maintaining a 1:1 ratio.

- These allegations have sparked controversy in the crypto community, with some arguing that Coinbase lacks transparency about its Bitcoin reserves.

- Armstrong explained that the minting and burning of Bitcoin for BlackRock's Bitcoin Spot ETF is done transparently and on-chain.

- He also stressed that Deloitte audits Coinbase annually and the results are public.

- Armstrong acknowledged that the company's cbBTC product is backed by a centralized custodian, which is Coinbase.

- Some in the crypto community remain concerned about the transparency and reserves of cbBTC, arguing that there is no evidence of reserves or audits.

- The market share war between Coinbase and BitGo, managed by Justin Sun, may be the cause of the recent allegations.