Binance under surveillance – The cryptosphere has seen an incredible cascade of pyrotechnic disasters, including the big FTX “scam” by Sam Bankman-Fried was the crowning glory. Or not. Because some would see one expansion of this firework of bad news, with, for example, the explosion of Binance, for the most greedy disasters. It must be said that his latest “revision” fails to convince, especially the boss about the kraken.
Binance: its audit by Mazars perceived as a “red flag” by some
On 7 December 2022, the audit firm has Mazars published a report that carries Binance’s reserves. This study was intended – and was presented – as reassuringas the inspected assets looked well guaranteed according to the audit firm.
But apparently this report had one for some opposite effect to the desired one. In fact, the study commissioned by Mazars was seen as one “red flag” by at least two actors. The first of them is one old regulator from Securities and Exchange Commission (SEC) in the United States: John Reed Stark.
Binance’s ‘Proof of Reserve’ report does not address the effectiveness of internal financial controls, express an opinion or conclusion with certainty, or endorse any figures. I worked at (…) SEC for over 18 years. This is how I define a “red flag”. »
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Kraken lowers Binance to better prove infallible on its reserves
Jesse Powellthe founder and CEO of the crypto exchange the krakenresponded to the former SEC member’s tweet above, for prove him rightat least partially.
The founder of Kraken is still proud of remind of the quality of “Proof of Reserve” of its own cryptocurrency exchange platform. But he sees Binance’s as next to the plateto summarize his thoughts:
“The big red flag for me here is that [ce rapport de Mazars] seems to be more of an attempt to prove the guarantees (collaterals) rather than proving the reserves. They even admit that they are insolvent with respect to the actual assets owed in relation to the controlled tokens. The “security” accounting trick is exactly how FTX wanted to play its solvency.
The Binance platform and Changpeng Zhao are more than ever on the carpet, with the flames of FTX burning their feet. After the abuses committed by Sam Bankman-Fried’s empire, the cryptosphere does not seem no more wanting to let go. Thus smallest market anomaly on Binance is being scrutinized very closely by the crypto community, which is more feverish than ever.
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