Brian Armstrong, CEO of Coinbase, has accused Sam Bankman-Fried, the ex-CEO of FTX, of utilizing funds taken from clients to finance his trading entity, Alameda Research.

Bankman-Fried has constantly refuted any allegations of impropriety, but Armstrong thinks it’s ridiculous to accept his assertion that the mistake was purely a matter of bookkeeping.n

Armstrong declared that it was “clearly customer funds that had been taken and used in his hedge fund.”

Brian Armstrong, the CEO of Coinbase, alleged last month that Sam Bankman-Fried, the ex-FTX CEO, may have been involved in some form of deception following the failure of FTX.

Furthermore, Armstrong asserted that Bankman-Fried’s behavior was not due to an inadvertent error, and he speculated on what could have caused it.

As Armstrong went on to explain, “Sam made a loan from FTX to Alameda in an effort to save it from insolvency. I’m not sure of his motives.”

Brian Armstrong, the CEO of Coinbase, has accused Sam Bankman-Fried, the former CEO of FTX, of perpetrating fraud.

Moreover, Armstrong believes that Bankman-Fried deliberately misled users and investors and attempted to rescue companies such as Voyager and BlockFi from the weight of the now-defunct firm’s staggering $8.9 billion liabilities.

Bankman-Fried has maintained his innocence, claiming he never knowingly dealt with customer funds and expressing regret for the circumstances.