CEO of Nasdaq-listed cryptocurrency exchange Coinbase The person responsible, Brian Armstrong, has accused former FTX CEO Sam Bankman-Fried (SBF) of claiming that FTX is losing $8 billion due to an “accounting error.” He stressed:
Brian Armstrong’s allegations of SBF’s “accounting errors”
Brian, CEO of Nasdaq-listed cryptocurrency exchange Coinbase (Nasdaq: COIN) Armstrong has accused FTX co-founder Sam Bankman-Fried (SBF) of blaming the failed exchange’s $8 billion loss on an “accounting error.”
Bankman-Fried was asked how he “misplaced $8 billion” in an interview with Bloomberg published Friday. A former FTX boss replied, “Miscalculation.” He further explained that FTX customers sometimes send money to his trading firm, Alameda Research, instead of sending money directly to FTX. The cryptocurrency exchange’s internal accounting system then double-counted the money and credited both the exchange and the customer.
Many do not believe his Bankman-Fried excuse, including his CEO of Coinbase. Armstrong tweeted on Saturday:
I don’t care how messy your accounting is (or how rich you are).
“Even the most gullible should not believe Sam’s claim that this is an accounting error,” emphasized Coinbase executives.
Armstrong emphasized in a follow-up tweet:
It was stolen client money used in his hedge his funds, It’s plain and simple.
Most people in the cryptocurrency industry agree with Coinbase bosses and believe Bankman-Fried should go to jail for what he has done, but SBF is a fraudster. Some refuse to admit that they are.
Shark Tank star Kevin O’Leary, for example, said that SBF is one of the best traders in the cryptocurrency industry and that if a former FTX exec were to do something else, he would. Claims to support again. Billionaire hedge fund manager Bill Ackman also said he believed Bankman-Fried was telling the truth when he said he “did not mix funds on purpose.”
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