Brian Armstrong, the chief executive officer of Coinbase, questioned the explanation given by Sam Bankman-Fried (FTX’s founder) for mismanaging US$8B. Coinbase CEO stated that Bankman-Fried’s justification of accounting error cannot justify in front of scrutiny. In his Twitter post, Armstrong stressed that SBF cannot get away with the mismanagement of such a high amount by describing his sloppy account or richness.

Armstrong of Coinbase Says SBF’s ‘Accounting Error’ Cannot Justify Mismanagement of $8B

The Coinbase executive discussed the worth of up to $8B that was taken without permission from the funds of the customers and was sent to Alameda Research. He considers that even a naïve person should not accept the claims of SBF that what happened was an error in accounting. The crypto exchange Coinbase had been a competitor of FTX. Armstrong then accused that the funds were stolen from the customers of FTX and were utilized to meet a gap in the balance sheet of Alameda.

**Related: **FTX Saga: The Downfall of the Crypto Empire of SBF

Both Alameda and FTX are at present going through bankruptcy proceedings. The bankruptcy filing was submitted by the Bahamas-based crypto exchange under the US court on the 11^th of November. Further, FTX alleged that the funds were extracted from the exchange to assist crypto trading and cover the loans of Alameda. Following that, on the 30^th of the same month, Sam Bankman-Fried attempted to answer the allegations.

While appearing at the DealBook Summit, SBF asserted that he did not know what exactly took place with the funds. In addition, he mentioned that, as he was not operating Alameda, he was unaware of their position’s size. John J. Ray III is the new CEO of FTX from Chicago who dealt with Enron Corp.’s bankruptcy in 2001. Furthermore, he mentioned that FTX came under the worst instances witnessed by him in terms of corporate controls.

**Related: **Alameda Reportedly Rescued FTX in 2021, SBF Denies Knowing

New FTX CEO Labels It as the Worst Case He Ever Handled

An FTX attorney disclosed on the 22^nd of the previous month during the platform’s initial court hearing, a huge asset amount is either missing or has been stolen from FTX. Amid the collapse of FTX, Coinbase has attempted to present itself as a dependable crypto exchange. For this, the platform took an ad on a complete page in the Wall Street Journal, with title “Trust US.”