Brian Armstrong, CEO of Coinbase, has accused former FTX CEO Sam Bankman-Fried of using stolen customer money to fund his trading firm, Alameda Research.
While Bankman-Fried continues to deny any wrongdoing, Armstrong believes that even very gullible people should not believe his claim that this was an accounting error.
Armstrong said, “It’s stolen customer money used in his hedge fund, plain and simple.”
Last month, Brian Armstrong, CEO of Coinbase, accused former FTX CEO Sam Bankman-Fried of likely committing some form of fraud in the aftermath of the collapse of FTX.
Armstrong said that the situation was not the result of an honest mistake, and speculated on the reasons for Bankman-Fried’s actions.
In addition, Armstrong said, “They had this solvency issue and instead of just letting it blow up, Sam basically said, ‘Hey we have a bunch of customer assets over here at FTX’ or he somehow basically made a loan from FTX into Alameda trying to prop it up. I don’t know why he did that.”
Brian Armstrong, CEO of Coinbase, has accused former FTX CEO Sam Bankman-Fried of committing fraud. Armstrong believes that Bankman-Fried lied to users and investors and attempted to bail out companies like Voyager and BlockFi in order to avoid the consequences of the now-defunct firm’s $8.9 billion in liabilities.
However, Bankman-Fried has maintained that he never willingly traded customer funds and has expressed remorse for the situation.