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Coinbase CEO Slams Sam Bankman-Fried for Blaming FTX’s $8 Billion Hole on ‘Accounting Error’

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.”

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