1 year ago
Coinbase CEO Brian Armstrong took to Twitter connected Nov. 8 with a thread that started by sharing his “sympathy for everyone progressive successful the existent concern with FTX.” Armstrong empathized that it tin beryllium “stressful” erstwhile lawsuit assets are astatine risk.
However, the Coinbase CEO ensured the assemblage understood the differences betwixt Coinbase and FTX, stating that Coinbase has nary “material exposure” to either FTX oregon Alameda Research.
2/ Second, Coinbase doesn't person immoderate worldly vulnerability to FTX oregon FTT (and nary vulnerability to Alameda).
— Brian Armstrong (@brian_armstrong) November 8, 2022
In a beardown statement, Armstrong claimed,
“This lawsuit appears to beryllium the effect of risky concern practices, including conflicts of involvement betwixt profoundly intertwined entities, and misuse of lawsuit funds (lending idiosyncratic assets).”
FTX’s CEO Sam Bankman-Fried had antecedently claimed that lawsuit assets were not astatine hazard successful a now-deleted Twitter thread. However, pursuing the announcement of a imaginable Binance acquisition, helium confirmed that determination was a “backlog” of lawsuit withdrawals that FTX needed assistance from Binance to clear.
Armstrong explained that Coinbase is registered and publically listed successful the U.S. “because we judge that transparency and spot are truthful important.” Furthermore, arsenic a publically traded company, Coinbase is required to people fiscal information successful accordance with SEC regulations, which FTX, a privately held company, is not.
6/ We are incorporated successful the US, and publically listed successful the US due to the fact that we judge that transparency and spot are truthful important. Every capitalist and lawsuit tin spot our nationalist audited financials, which shows however we clasp lawsuit funds. We've ne'er issued an speech token.
— Brian Armstrong (@brian_armstrong) November 8, 2022
Armstrong besides took the accidental to propulsion backmost against accrued regulation, thing that SBF had advocated while stipulating areas successful which the crypto manufacture could “compromise.”
Armstrong argued that Coinbase volition proceed to “work with policymakers to make sensible regularisation for centralized exchanges.” Yet, helium besides stipulated that helium did not judge determination had been a “level playing field” to this point.
10/ We should proceed to enactment with argumentation makers to make sensible regularisation for centralized exchanges/custodians successful each marketplace (as we've been doing for immoderate time), but past we request to spot a level playing tract enforced, which hasn't happened to date.
— Brian Armstrong (@brian_armstrong) November 8, 2022
The Coinbase CEO besides advocated for the maturation of non-custodial solutions.
“DeFi and self-custodial wallets that don’t trust connected trusting 3rd parties. Instead, you tin spot successful code/math and everything tin beryllium publically auditable on-chain.”
Armstrong ended his Twitter thread with a nexus to Coinbase’s transparency attack stating that Coinbase is “the astir trusted crypto institution retired there.”
The station Coinbase CEO calls retired “risky concern practices” successful FTX saga, sympathizes with those involved appeared archetypal connected CryptoSlate.
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