The billionaire founder of Coinbase disputes Sam Bankman-Fried’s account of events, claiming that the funds were stolen.
Brian Armstrong, the CEO of the prominent cryptocurrency exchange Coinbase, thinks that Sam Bankman-Fried misappropriated client funds, which eventually led to the bankruptcy of FTX at the beginning of the month. This is in stark contrast to what Bankman-Fried has said in a series of public interviews.
After a short time of silence, the former CEO of FTX has undertaken multiple interviews to explain what transpired with the exchange and client money, but his answers have been criticized by the cryptocurrency community, who perceive them as ineffective damage management.
Armstrong did not mince words when commenting on Bankman-account Fried’s of the circumstances leading to the collapse of his exchange.
The assumption is that the funds were utilized to repair a hole in Alameda Research, FTX’s sister company’s balance sheet.
As a reminder, upon reappearing in public, Bankman-Fried attributed the company’s demise and the transfer of $8 billion from FTX to Alameda to poor bookkeeping and “major management problems.” The link between these two businesses is still under investigation.
In an interview with The New York Times, the former CEO stated that he “never attempted to defraud anyone,” that he “didn’t knowingly commingle funds,” that he “was honestly surprised by how large Alameda’s position was,” and that there was “a massive failure of oversight of risk management and of diffusion of responsibility from myself running FTX.”
Sunday’s issue of Fortune quoted Armstrong as saying, “I find it puzzling that [Bankman-Fried] is not already in jail.”
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