Coinbase CEO Brian Armstrong said he was “embarrassed” by the fact that FTX’s Sam Bankman-Fried has still not been apprehended

Brian Armstrong, co-founder and chief executive officer of Coinbase Inc., speaks during the Singapore Fintech Festival, in Singapore, on Friday, Nov. 4, 2022. The conference runs through Nov. 4. Photographer: Bryan van der Beek/Bloomberg via Getty Images

According to Brian Armstrong, FTX founder Sam Bankman-Freed has been arrested. “Why he wasn’t arrested remains a mystery. The fraud case is closed,” Armstrong said this week at the a16z cryptocurrency founders’ summit on Tuesday. He added: “I’m not an expert on this, but the people I’ve spoken to seem to agree.”Armstrong also questioned why the media has refrained from calling Bankman-Fried a criminal.

“I think everyone was surprised at the level of fraud on FTX. And this is called cheating. How should we call it? It’s so weird that the mainstream media doesn’t actually come out and say, “This guy is a criminal.” Perhaps they want to wait until he is charged or taken into custody.

But at the time of this writing, it seems quite clear that this is the case.” FTX has dropped unexpectedly over the past month, shocking many inside and outside of the cryptocurrency sector. The $32 billion stock market is the leader in this space. The collapse shook the confidence in the cryptocurrency sector and demanded tighter regulation.

Bankman-Fried stepped down as CEO of FTX on November 11, the same day FTX filed for bankruptcy along with sister trading firm Alameda Research. The main accusation against Bankman-Fried was that he used the funds of the cryptocurrency exchange clients to fund risky bets against Alameda Research.

Like FTX, Coinbase Armstrong is a cryptocurrency exchange. But while Bankman-Fried FTX is based in the Bahamas, where it lives a luxurious penthouse lifestyle, Coinbase is a US-listed company. “I can read financial statements,” Armstrong said. “They have been verified by a third party, so we don’t need to be trusted. All customer funds are segregated. We do not invest our clients’ money without their strict instructions.”

People will go to jail. Armstrong is not the only cryptocurrency mogul to speak at Bankman-Fried this week. Mike Novogratz, CEO of cryptocurrency firm Galaxy Digital Holdings, told Bloomberg TV on Thursday that “Sam and his associates continue to engage in fraud. They use the client’s money to bet that he has been “mishandled” after the risk has been created.

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