US-based cryptocurrency exchange COINBASE doesn’t have any «material exposure» to its troubled rival FTX or Alameda Research, the exchange’s head Brian Armstrong said in a tweet thread.
Armstrong suggested that FTX’s collapse is likely the result of «risky business practices, including conflicts of interest between deeply intertwined entities, and mis-use of customer funds.» The Coinbase CEO reassured users that his trading platform doesn’t deal with customers’ funds «unless directed to by the customer.» Armstrong added:
«We hold all asset dollar for dollar, and users can withdraw their money at any time.»
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Coinbase boss also reiterated his strong position against weak US regulatory framework, saying that over 95% of crypto trading has developed overseas because «crypto regulation in the US has been hard to navigate.»
Armstrong’s comments come after BINANCE announced plans to acquire FTX over its «significant liquidity crunch.» Although it is still unclear what was the reason behind Bankman-Fried’s decision to sell his exchange to his main competitor, he wrote in a staff letter that users withdrew from FTX roughly $6 billion within 72 hours amid its fight with Binance.