Coinbase CEO Brian Armstrong: Why would traders put cash into FTX now? (NASDAQ:COIN)

Brian Armstrong, CEO of cryptocurrency trade Coinbase International (NASDAQ:COIN), stated Thursday that he has no clue “why traders would put cash” into Sam Bankman-Fried’s imploding crypto trade, FTX.

The non-U.S. portion of FTX got here below an overwhelming quantity of withdrawal requests over the weekend, nevertheless it did not fill these requests and thus it confronted a liquidity crunch. Shortly thereafter the liquidity-strapped trade got here near promoting itself to rival Binance, however the latter shortly stepped away from its non-binding settlement, citing fund mishandling and regulatory points.

Now FTX is reportedly scrambling to boost $9.4B from potential traders, however the desired rescue package deal is not near coming to fruition.

“It is shocking to me that Sam remains to be pursuing that line of making an attempt to boost cash for this enterprise,” Armstrong informed CNBC in an interview.

The Coinbase (COIN) chief famous that SBF approached him “within the mode of making an attempt to boost financing, emergency financing.” Coinbase stated earlier this week that it has minimal publicity to FTX and nil publicity to FTX token (FTT-USD), the crypto issued by FTX.

“However you already know, it shortly grew to become obvious to me that this [FTX] wasn’t the kind of asset that we’d wish to put money into if it was really that far underwater,” he added. “And, you already know, if there had really been both fraud or simply, you already know, misrepresentation to both clients or traders, you already know, in my at that time, my view was that the agency did not have worth to, for us to take part in something, even when we might.”

Earlier, Coinbase pursued second spherical of job cuts.