Coinbase CEO Fires Back At Justin Sun’s Allegations On cbBTC Transparency
The Coinbase CEO also emphasized that the wrapped Bitcoin, cbBTC, operates as a centralized custodian product, which has always been made clear. “As for cbBTC, yes, you’re trusting a centralized custodian to store the underlying BTC – we’ve never claimed otherwise,” he noted
In a pointed response, Armstrong dismissed Sun’s concerns as largely unfounded. He clarified that all transactions related to ETFs, including mints and burns, are settled on-chain. “Not sure what this is all about TBH. All ETF mints and burns we process are ultimately settled onchain,” Armstrong said. He added that institutional clients have access to trade financing and over-the-counter (OTC) options before their trades are finalized onchain.
The Coinbase CEO also emphasized that the wrapped Bitcoin, cbBTC, operates as a centralized custodian product, which has always been made clear. “As for cbBTC, yes, you’re trusting a centralized custodian to store the underlying BTC – we’ve never claimed otherwise,” he noted.
In his posts, Tron’s Sun raised a series of concerns about Coinbase’s new product. Moreover, Sun specifically highlighted the lack of Proof-of-Reserve (PoR) and audits for cbBTC, describing it as a “trust me” system. In addition, he warned that users’ balances could be frozen without notice.
According to Sun, Coinbase’s wrapped Bitcoin poses a significant risk of government intervention. “Any U.S. government subpoena could seize all your BTC. There’s no better representation of central bank Bitcoin than this. It’s a dark day for BTC,” Sun cautioned.
