CEO of major crypto exchange coinbaseBrian Armstrong, originally called ftx Founder Sam Bankman-Fried was a liar, saying that the latter could not have missed showing billions of ‘extra’ dollars in the accounts.
After a brief period of quiet, the former FTX CEO has given interviews in an attempt to explain what happened to the exchange and customer funds – but his explanation has drawn resentment and criticism from the crypto community who see it as a (bad) Damage control efforts.
Commenting on Bankman-Fried’s version of events that led to their exchange, Armstrong was not mincing words, saying,
“This is theft of customer money that is used in his hedge fund, plain and simple.”
The implication here is that the money was used to fill a hole in the balance sheet of FTX’s parent company and brokerage arm. Alameda Research,
According to Armstrong,
“I don’t care how messed up your accounting is (or how rich you are) – you’re definitely going to notice if you’ve got an extra $8B to spend.”
Armstrong further stated that “even the most gullible should not believe Sam’s claim that it was an accounting error.”
As a reminder, after reappearing publicly, Bankman-Fried blamed poor accounting and “huge management failures” for the company’s failure, and for the $8 billion move from FTX to Alameda. The relationship between these two companies is under scrutiny and has become highly controversial following the FTX explosion.
in the New York Times InterviewThe former CEO said that he “never tried to defraud anyone”, that he “never knowingly exchanged funds”, that he was “apparently surprised by how large Alameda’s position was”. were”, and that “a colossal failure of risk management oversight and diffusion of responsibility from those running FTX themselves.”
Good luck informed of On Sunday, Armstrong said it’s “bothering me why [Bankman-Fried is] Not already in custody.
Meanwhile, some commentators called Bankman-Fried – who graduated Bachelor’s degree in Physics with a minor in Mathematics Massachusetts Institute of Technology — to tweet first about the finances of other companies — specifically, in this case, Coinbase’s earnings — rather than focusing on his own company’s accounting.
FTX and Alameda are currently in bankruptcy proceedings, filed Documents on 11 November
After the FTX collapse, there were reports that some $1 billion – $2 billion of client funds had gone missing and that banker-friends secretly moved $10 billion to Alameda.
In late November, James Bromley, counsel to the new management of FTX, Told During the bankruptcy hearing that a “substantial amount” of FTX’s property was either lost or stolen.
According to Bromley, the former leadership demonstrated a lack of professionalism in managing billions of dollars in users’ cryptocurrencies. “We have a worldwide, international organization here, but one that was run as the personal fiefdom of Sam Bankman-Fried,” he claimed.
Coming back to Coinbase shortly after FTX filed for bankruptcy, the old exchange took out a full-page ad in the Wall Street Journal that said: “Trust us.”
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learn more:
, Coinbase CEO Reveals Company Holds Over $39 Billion Worth of BTC in Response to Now-Deleted Binance CEO’s Tweet
, Earnings Report: Coinbase Lost $545 Million in the Third Quarter – Stock Plummets
, Sam Bankman-Fried lost $17 billion in wealth, now has only $100,000 in the bank
, Sam Bankman-Fried gives live interview about FTX collapse
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