The chief executive of the Nasdaq-listed cryptocurrency exchange Coinbase, Brian Armstrong, has slammed former FTX CEO Sam Bankman-Fried (SBF) for claiming that FTX is missing $8 billion due to an “accounting error.” He stressed: “It’s stolen customer money used in his hedge fund, plain and simple.”
Brian Armstrong on SBF’s ‘Accounting Error’ Claim
The CEO of the Nasdaq-listed cryptocurrency exchange Coinbase (Nasdaq: COIN), Brian Armstrong, has slammed FTX co-founder Sam Bankman-Fried (SBF) for blaming his collapsed exchange’s $8 billion hole on an “accounting error.”
Bankman-Fried was asked in an interview with Bloomberg, published Friday, how he “misplaced $8 billion.” The former FTX boss replied: “Misaccounted.” He further explained that FTX customers sometimes wired money to his trading firm, Alameda Research, instead of sending it directly to FTX. The crypto exchange’s internal accounting system then double-counted the money, crediting it to both the exchange and the customers.
Many people do not believe Bankman-Fried’s excuse, including the CEO of Coinbase. Armstrong tweeted Saturday:
I don’t care how messy your accounting is (or how rich you are) — you’re definitely going to notice if you find an extra $8B to spend.
“Even the most gullible person should not believe Sam’s claim that this was an accounting error,” the Coinbase executive stressed.
Armstrong emphasized in a follow-up tweet:
It’s stolen customer money used in his hedge fund, plain and simple.
While most people in the crypto space agree with the Coinbase boss and believe that Bankman-Fried should go to jail for what he’s done, there are some people who refuse to admit that SBF is a fraud.
Shark Tank star Kevin O’Leary, for example, has insisted that SBF is one of the best traders in the crypto space and he would back the former FTX executive again if he has another venture. Billionaire hedge fund manager Bill Ackman also said that he believes Bankman-Fried was telling the truth when he said he “didn’t knowingly commingle funds.”
Tags in this story
What do you think about Sam Bankman-Fried’s “accounting error” excuse for FTX’s $8 billion hole? Let us know in the comments section below.
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.