Connect with us

Business

Coinbase CEO Brian Armstrong says SBF’s messy accounting excuse for FTX collapse doesn’t explain $8 billion loss: ‘Even the most gullible person should not believe Sam’s claim that this was an accounting error’

News Agencies

Published

on

Ever since Sam Bankman-Fried’s crypto exchange FTX melted down last month, one of the biggest questions is what exactly happened to $8 billion that seems to have gone missing.

Bankman-Fried, also known as SBF, has said that poor management of company accounts led to the collapse and bankruptcy of FTX.

But another major crypto founder thinks SBF’s reasoning needs to be taken with a grain of salt.

Brian Armstrong, CEO of [hotlink]Coinbase[/hotlink], a crypto exchange platform, wrote in a tweet on Dec. 3 that he wasn’t buying the accounting practices excuse.

Advertisement

“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,” he wrote.

“Even the most gullible person should not believe Sam’s claim that this was an accounting error,” he added in a follow-up tweet.

Armstrong went on to speculate about what happened to the missing money, saying he believed “stolen” customer money was used for Alameda Capital, SBF’s trading company.

Advertisement

FTX did not immediately respond to Fortune’s request for comment.

FTX filed for bankruptcy on Nov. 11. It is now the subject of an investigation by the Department of Justice and the Securities and Exchange Commission. Some reports have surfaced that customer funds from FTX were used in trading by FTX’s sister firm, Alameda Research, which has also filed for bankruptcy. SBF said in an interview last week that he did not “knowingly comingle funds,” and said that the collapse was due to a “failure of oversight.”

SBF was hailed as the white knight of the crypto when he swooped in to bail out several crypto companies during the downturn earlier this year. No longer a billionaire, he was worth $26 billion at his peak. With the collapse of FTX, the 30-year-old founder has said in interviews that he believes his fortune to be somewhere in the range of $100,000.

Advertisement

Armstrong has been vocal over the past few weeks about how FTX’s bankruptcy could impact the broader crypto landscape, which was already in the middle of a Crypto Winter when FTX collapsed last month.

Last week, Armstrong said that he found it “baffling” that SBF was not already in police custody. “The DOJ or somebody should be able to make—just based on his public statements, I think there’s a very open-and-shut case for fraud,” he said at a crypto conference on Nov. 29.

In a [hotlink]Twitter[/hotlink] discussion last month, Armstrong said regulators also had a role to play in the FTX bankruptcy.

Advertisement

“The lack of regulatory clarity, I think, in the major markets actually pushed a lot of this stuff offshore into these jurisdictions, which didn’t help,” Armstrong said. He added that he hoped regulators would consider the FTX episode reason enough to work together on addressing the problems cryptocurrencies face.

But Armstrong said in that same discussion that despite the FTX meltdown, all is not lost for crypto.

“A lot of times these crises pass,” he said.

Advertisement

This story was originally featured on Fortune.com

More from Fortune: Rishi Sunak’s old hedge fund boss paid himself $1.9 million a day this year Meet the 29-year-old teacher with four degrees who wants to join the Great Resignation How much money you need to earn to buy a $400,000 home Elon Musk ‘wanted to punch’ Kanye West after deeming the rapper’s swastika tweet an ‘incitement to violence’

Advertisement
Continue Reading
Advertisement

Advertisement

Breaking News

Editor Pick’s

Latest Entertainment

Entertainment1 hour ago

Ghostface goes for an NYC slice (and dice) in Scream VI trailer

In Scream VI, the four young survivors from last year’s Scream — played by Melissa Barrera, Jenna Ortega, Jasmin Savoy...

Entertainment2 hours ago

AP Top 25 Movies: Breaking down our panelists’ picks

Fiercely original films, female-focused stories and theatrical-first releases had the clear edge in The Associated Press’s inaugural Top 25 Movies...

Entertainment3 hours ago

Met Gala 2023 date, dress code revealed: Dua Lupa, Michaela Coel to co-chair Karl Lagerfeld-themed event

New York City’s Metropolitan Museum of Art is ready to get the full glam treatment in just a few months....

Entertainment9 hours ago

‘Boy Meets World’ Star Ben Savage Is Planning a Run for Congress

ben savage Emma McIntyre/Getty Ben Savage, best known for his portrayal of Cory Matthews on Boy Meets World, is planning...

Entertainment14 hours ago

KISS’s Paul Stanley on painting, facepainting and why he switched to ‘Bandit’ makeup for one month in 1974

When KISS guitarist/frontman Paul Stanley began painting in 2001, he never expected anyone to even see, let alone purchase, his...

Entertainment15 hours ago

Avatar: The Way of Water splashes Spider-Man: No Way Home in box office charts as it nears $2bn gross

Avatar: The Way of the Water is passing milestone after milestone on its quest for box office dominance. As of...

Entertainment15 hours ago

Julian Sands, ‘A Room With a View’ star, reported missing after hiking in California

British actor Julian Sands at the 76th Venice Film Festival for his film The Painted Bird. (Photo: Reuters) Julian Sands,...

Entertainment15 hours ago

Anne Heche said Ellen DeGeneres was the ‘first and only woman that I ever fell in love with’: memoir

Anne Heche, who died in August, wrote about her romance with Ellen DeGeneres in her new memoir. (Photo: Reuters) Anne...

Advertisement

Latest Sports

Sports52 mins ago

Why Eagles top draft picks better off (mostly) not playing, while an undrafted guy shines

Why Eagles rookies will be further ahead by watching as opposed to playing on a team not in the playoffs?

Sports1 hour ago

Andy Murray vs Thanasi Kokkinakis, Australian Open live: Racket smashed after epic point

Andy Murray vs Thanasi Kokkinakis, Australian Open live: Racket smashed after epic point

Sports2 hours ago

Breaking down USC’s newly-released 2023 football schedule

The good news is that USC has two byes on its 2023 football schedule. The bad news is that the...

Sports2 hours ago

Watch: Novak Djokovic fumes at ‘drunk’ Where’s Wally fan during Australian Open match

Novak Djokovic lost his cool at the Australian Open, when a rowdy "drunk" spectator dressed in a Where's Wally costume...

Sports3 hours ago

Breaking down matchups and picking four winners in the NFL playoffs divisional round

Predicting the four winners in the NFL playoff divisional round and who will be advancing to the conference championship games.

Sports3 hours ago

Islanders start strong, but Bruins bully their way to 4-1 win

Defensemen Charlie McAvoy and Derek Forbort scored in the second period, and the Boston Bruins beat the New York Islanders...

Sports3 hours ago

Tom Brady’s time is up. And there’s no perfect fit for him to ride off in a glorious sunset

Even for an all-time great such as Tom Brady, the magic had to eventually run out. In Monday's playoff loss...

Sports4 hours ago

Rob Gronkowski gives depressing take on playing for Patriots

Former Patriots tight end Rob Gronkowski says while playing in New England, even wins felt like losses.

Technology Hot News

Technology11 hours ago

Led by "Amazon" and "Microsoft" .. the technology giants are planning to lay off 64,000 employees

After 10 years of driving the stock market bull run, big tech companies are racing to downsize staff to adapt...

Technology23 hours ago

Apple introduces MacBooks with new M2 processors

Yesterday, Tuesday, Apple unveiled MacBooks powered by the new, faster “M2 Pro” and “M2 Max” processor chips, in a surprise...

Technology1 day ago

All you need to know about the upcoming Galaxy S23 phones from Samsung

Samsung has officially announced that the (Galaxy Unpacked 2023) event will be held this year on Wednesday, February 1, which...

Technology1 day ago

FTX Exchange Announces Hacking and Stolen $415 Million in Cryptocurrency

Bankrupt American cryptocurrency firm FTX announced today, Wednesday, that $415 million in cryptocurrency has been hacked and stolen from the...

Technology1 day ago

Because of a "fraudulent tweet"… Elon Musk's trial begins

Elon Musk's trial began Tuesday in San Francisco with the selection of jury members who will have to decide whether...

Technology2 days ago

An electric spoon replaces salt and spices, but with conditions

Experts have developed an electric spoon that is able to replace spices and flavors and affect the taste buds in...

Technology4 days ago

The biggest dangers of using tracking devices.. so you can escape?

If you spot an unknown Bluetooth tagging device, there are ways to disable the device so it can't track your...

Technology4 days ago

New Twitter.. For You tab to web version

The Twitter platform announced that it will bring the new tab (For You), which launched last Tuesday for iPhones and...

Advertisement