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FTX “Accounting Error” Rejected – Coinbase CEO Says Funds Were Stolen

Brian Armstrong, who is the Chief Executive Officer at Coinbase slammed FTX CEO Sam Bankman-Fried. Armstrong strongly disagrees with the FTX owner’s story of how his company ended up with $8 billion in debt.

Accounting Error Impossible

According to Armstrong, there is no chance that multi-billions of dollars could have gone unnoticed by Sam Bankman-Fried. “ I don’t care how messy your accounting is… you’re definitely going to notice if you find an extra $8B to spend”, Said Brian Armstrong in a tweet. “Even the most gullible person should not believe Sam’s claim that this was an accounting error.”

 

The CEO of Coinbase went even further, saying that he is convinced that the FTX balance sheet discrepancy was created intentionally. Armstrong went on to write, “It’s stolen customer money used in his hedge fund, plain and simple.

FTX Collapse

As the crypto company FTX continues to implode, CEO Sam Bankman-Fried is being accused of transferring roughly $10 billion worth of customer money to a hedge fund called Alameda Research, which was co-founded by the FTX CEO.

 

According to Bankman-Fried, he did not intentionally commingle funds between his crypto company and his hedge fund. Instead, he blamed the $8 billion discrepancy on errors in the accounting field.

Sam’s Explanation

In a recent interview with Bloomberg, Bankman-Fried said that the reason the money in the accounts of FTX users was being sent to Alameda Research is that banks are more willing to work with a hedge fund over a crypto exchange company. He claims this led to assets being accounted for twice and the accounts of users being credited were double-counted.

Unprecedented Disaster

 

John Jay Ray III is a prominent lawyer who is overseeing the FTX bankruptcy as its acting CEO. When asked about this situation, Ray referred to it as “Unprecedented.” Furthermore, court documents are beginning to reveal that FTX did not even have an accounting department.

Opportunity for Coinbase

The collapse of FTX has presented an opportunity that Coinbase is already seizing. As soon as the FTX news came out, Coinbase began depicting itself as the trusted name in the crypto industry. A little less than a week after FTX filed for bankruptcy, Coinbase paid for a full-page advertisement in the Wall Street Journal.

 

The ad was titled, “Trust Us” and said that “millions of people had recently placed their trust and money with others that didn’t deserve it.”

Wrap-Up

 

Despite the newest ad from Coinbase, the quick collapse of FTX has put a bad taste in the mouth of investors when it comes to the crypto industry. FTX was an empire in the eyes of crypto investors, and the collapse of the FTX empire puts a dark cloud over the entire digital coin industry.

 
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