Coinbase CEO Breaks His Silence: Heavily Criticizes FTX!

Cryptocurrency Brian Armstrong, CEO of Coinbase, the world’s second largest exchange, also commented on the conflict between Binance and FTX, which is currently ravaging the market.

Coinbase Announces No Investments in FTX and Alameda Research

Armstrong, who has remained silent until now, said in his latest statement on Twitter:

“First of all, I am deeply sorry to all involved in the current situation with FTX, it is always stressful when there is potential for loss of customers.

Second, Coinbase has no financial investments in FTX or FTT (and Alameda).”

Coinbase CEO criticized FTX’s business practices:

“I think it’s important to highlight what makes Coinbase different at a time like this. This event appears to be the result of risky business practices, including conflicts of interest between intertwined entities and misuse of client funds (lending of user assets).

Coinbase has always tried to be the most reliable company in the space and we do not engage in such risky activities.

We do nothing with our clients’ funds unless directed by the client. We keep all assets in dollars and users can withdraw their money at any time.”

Armstrong added that the fact that they are based in the USA is important to the trust of users, and that they have also never issued an exchange altcoin of their own:

“We were founded in the USA and went public in the USA because we believe transparency and trust are very important. Every investor and client can view our publicly audited financial statements that show how we hold client funds. We have never issued an exchange token.

Part of the problem here is that regulators are focused on their own regions in each of their markets, while customers are oriented towards companies with more opaque and risky business practices.”

The CEO of Coinbase said that most Americans lose money in overseas companies:

“Taking the US as an example, more than 95% of crypto trading developed overseas because crypto regulations in the US were difficult to navigate. This is bad for the US and Americans are still losing money in these overseas booms.

The tendency for events like these is to call for stricter regulation. This will only exacerbate the problem of crypto companies and crypto users going overseas.”

Armstrong urged regulators not to repeat such incidents:

“We must continue to work with politicians to create sensible arrangements for centralized exchanges/custodial institutions in each market (as we have been doing for a while), but then see the implementation of an even competitive arena, which has not happened until now.

In the long run, the crypto industry has the opportunity to build a better system that does not rely on 3rd parties with DeFi and self-managed wallets. Instead, you can rely on the code/math and everything can be publicly audited on the chain. This is a topic for another day…”

*Not investment advice.

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