Coinbase CEO Says Sam Bankman-Fried's Hedge Fund Used $8B Of Stolen Customer Money: 'Even The Most Gullible Person Shouldn't Believe…'

Coinbase Global COIN CEO Brian Armstrong harshly criticized Sam Bankman-Fried, suggesting that the discrepancy on FTX's balance sheet was caused by the misappropriation of customers' funds.

"It's stolen customer money used in his hedge fund, plain and simple," Armstrong said.

What Happened: On Saturday, Armstrong disagreed with the explanation given by Bankman-Fried with regard to FTX's 8-billion-dollar deficit. He expressed his disbelief that such a large amount of money could not have gone unnoticed by SBF.

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.

— Brian Armstrong (@brian_armstrong) December 3, 2022

“I don't care how messy your accounting is … you're definitely going to notice if you find an extra $8B to spend,” he said on Twitter. “​​Even the most gullible person should not believe Sam's claim that this was an accounting error.”

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Following the bankruptcy of FTX, it has been suggested that $10 billion in customer funds had been covertly transferred to Alameda Research, a hedge fund co-founded by SBF.

However, SBF has asserted that he did not knowingly mix funds between FTX and Alameda. He attributed the $8 billion deficit to inadequate bookkeeping in a recent interview with Bloomberg.

Price Action: At the time of writing, FTT was trading at $1.41, up 4% in the last 24 hours, according to Benzinga Pro.
Read Next: Sam Bankman-Fried To Testify Before U.S. House Committee After 'Learning and Reviewing' FTX Crash

Photo by TechCrunch on Flickr