Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

'It appears massive fraud was committed': Here are the 7 best quotes from Coinbase CEO Brian Armstrong's interview on crypto, FTX, and the future of digital assets.

'It appears massive fraud was committed': Here are the 7 best quotes from Coinbase CEO Brian Armstrong's interview on crypto, FTX, and the future of digital assets.

"I do think we have to admit as an industry that crypto has attracted more fraudsters than we'd like," Brian Armstrong told Stratechery.
The swift collapse of FTX last month has shaken the cryptocurrency industry to its core, as token prices continue to fall and investor trust drops to a new low.

Coinbase hasn't been immune to the tumult, with the crypto exchange forecasting a 50% revenue decline in 2022 and its stock falling 84% year-to-date.

CEO Brian Armstrong spoke with the Stratechery newsletter on Thursday, addressing the future of crypto as well as the implosion of FTX and its impact going forward.

Here are the seven best quotes:

1. On the prevalent fraud in crypto

"I do think we have to admit as an industry that crypto has attracted more fraudsters than we'd like. It probably is getting too many people like that into this industry, which does frustrate me. I still think 95% of the people who I meet in crypto are legitimate people trying to do really good work. They don't really get the lion share of the attention, because everybody loves the salacious story."

2. On the downfall of FTX

"It appears that a massive fraud was committed. I think that customer funds appear to have been moved over to his hedge fund that he owned 90% of, and that those customer funds were lost. This is a violation not only of the terms of service as it's written as far as I understand it, but it's also probably just against the law and outright fraud."

3. On the media's response to the FTX implosion

"It's been pretty bizarre to kind of watch the whole thing unfold, primarily because I do feel like mainstream media has given a lot of softball interviews. And even this tweet back and forth with Maxine Waters very politely asking him to attend a hearing, and him politely deferring, it was bizarre. This guy just committed a $10 billion fraud, and why is he getting treated with kid gloves?"

4. On the future of crypto

"There are enough great people working in crypto that I think this industry is going to do really well. We do have a responsibility as an industry and policymakers and regulators to get a bunch of regulatory clarity, especially for the centralized pieces of crypto."

5. On the decentralization of crypto

"And then the decentralized pieces of crypto, which Coinbase also plays in that space, those are the ones that are going to actually, I think, provide consumer protections and things using something even better, even more powerful, which is open-source code, self-custody. Anybody can go in there and audit these smart contracts to see if they're doing what they claim to be doing. So there's even a better system we can create in the future."

6. On the lack of crypto regulation and its harm to US consumers

"What happened as a result of this lack of regulatory clarity in the US is that it became more profitable for companies to incorporate offshore and try to serve the world from these kind of favorable havens. And so that didn't really benefit customers or investors in the US. In fact, it caused them more harm. They were pushed into these offshore things that were not regulated. It didn't benefit American companies because, again, it harmed our ability to build our companies in the US."

7. On the benefits of crypto

"First it's a new form of money, and that's actually a really important thing. Many places in the world, people don't have stable currency, and there's all kinds of wealth that's eroded from the poorest people in society. It's just a foundational part that we take for granted in the US, given that we have 8 or 9% inflation, which we think is extreme. In many places in the world, you get 25% in a month or something."
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Man Convicted of Fraud After Booking Over 120 Free Flights Posing as Flight Attendant
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Beata Thunberg Rebrands as Beata Ernman Amidst Sister's Activism Controversy
Hungarian Parliament Approves Citizenship Suspension Law
Prime Minister Orbán Criticizes EU's Ukraine Accession Plans
Hungarian Delicacies Introduced to Japanese Market
Hungary's Industrial Output Rises Amid Battery Sector Slump
President Sulyok Celebrates 15 Years of Hungarian Unity Efforts
Hungary's Szeleczki Shines at World Judo Championships
Visegrád Construction Trends Diverge as Hungary Lags
Hungary Hosts National Quantum Technology Workshop
Hungarian Animation Featured at Annecy Festival
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
UK and EU Reach New Economic Agreement
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
UK and EU Reach Agreement on Gibraltar's Schengen Integration
Israeli Finance Minister Imposes Banking Penalties on Palestinians
U.S. Inflation Rises to 2.4% in May Amid Trade Tensions
Trump's Policies Prompt Decline in Chinese Student Enrollment in U.S.
Global Oceans Near Record Temperatures as CO₂ Levels Climb
Trump Announces U.S.-China Trade Deal Covering Rare Earths
Smuggled U.S. Fuel Funds Mexican Cartels Amid Crackdown
Austrian School Shooting Leaves Nine Dead in Graz
Bezos's Lavish Venice Wedding Sparks Local Protests
Europe Prepares for Historic Lunar Rover Landing
Italian Parents Seek Therapy Amid Lengthy School Holidays
British Fishing Vessel Seized by France Fined €30,000
Dutch Government Collapses Amid Migration Policy Dispute
UK Commits to 3.5% GDP Defence Spending Under NATO Pressure
Germany Moves to Expedite Migrant Deportations
US Urges UK to Raise Defence Spending to 5% of GDP
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Low Turnout Jeopardizes Italy's Citizenship Reform Referendum
Transatlantic Interest Rate Divergence Widens as Trump Pressures Powell
EU Lawmaker Calls for Broader Exemptions in Supply Chain Legislation
France's Defense Spending Plans Threatened by High National Debt
European Small-Cap Stocks Outperform U.S. Rivals Amid Growth Revival
Switzerland Proposes $26 Billion Capital Increase for UBS
×