Coinbase CEO Says Sam Bankman-Fried Hedge Fund Used $8 Billion in Stolen Customer Money: “Even the Most Gullible Person Shouldn’t Believe…”

Brian Armstrong, CEO of Coinbase Global COIN, strongly criticized Sam Bankman-Fried, suggesting that the discrepancy in FTX's balance sheet was due to misappropriation of customer funds.

"It's money stolen from a client used in their hedge fund, plain and simple," Armstrong said.

What happened: On Saturday, Armstrong disagreed with Bankman-Fried's explanation for FTX's $8 billion shortfall. He expressed his disbelief that such an amount of money could not have gone unnoticed by SBF.

"No matter how messy your bookkeeping is...you're definitely going to notice if you find another $8 billion to spend," he tweeted. "Even the most gullible person shouldn't believe Sam's claim that it was an accounting error."

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

However, SBF claimed that it did not knowingly mix funds between FTX and Alameda. He attributed the $8 billion shortfall to inadequate accounting 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 FTX crash 'review'

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