- Coinbase CEO says even the most gullible shouldn’t believe him
- SBF is full of shit about how margin trading works, says Powell
After the FTX implosion, its co-founder and CEO Sam Bankman-Fried (SBF) remained out of bounds for some time before he made public appearances and claimed that he and his team made an accounting error that resulted in the loss of $8 billion.
Stolen Customer money
But only a few may have accepted SBF’s explanation and Coinbase CEO Brian Armstrong is certainly not among them. In a tweet on Sunday, Armstrong called out his innocence.
“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,” his tweet read.
The Coinbase CEO further added, “It’s stolen customer money used in his hedge fund, plain and simple.”
Greed and Self-Interest
In a series of tweets on November 10, former Kraken CEO Jesse Powell said SBF is not an example of aiming high and failing but one that of greed and self-interest.
On December 3, he once again called out SBF’s bluff. “SBF is completely full of shit about how margin trading works. He’s saying that the whole exchange operated on a net account equity model and anybody could borrow anything (in any amount?) from client funds or from nowhere. That’s not how it should work,” he wrote.
Powell pointed out that borrowing BTC from customers’ funds vs FTT at market price is not a risk but a fraud.
“It all added up if you counted negative balances as 100% recoverable” WTF!? No, dude. Borrowing 10,000 BTC from client balances vs FTT at “mark-to-market” is not just bad risk management. It is obfuscated fraud. The only diff between SBF & Madoff is Madoff didn’t have a token, he said in another tweet.
