According to The Wall Street Journal, Binance’s efforts to make its reserves more transparent raised financial red flags.
Read CRYPTONEWSLAND onReports suggest that Mazars’ audit result on the exchange’s finances doesn’t inspire investor confidence due to a lack of information about the exchange’s internal controls and how it liquidates assets to cover margin loans.
A second red flag raised by the newspaper’s sources is the absence of information regarding Binance’s corporate structure. Patrick Hillmann, Binance’s chief strategy officer, was unable to identify Binance’s parent company despite Binance’s recent reorganization.
John Reed Stark, former Chief, SEC Office of Internet Enforcement react in a tweet post,
John Stark stated “Binance’s “proof of reserve” report doesn’t address the effectiveness of internal financial controls, doesn’t express an opinion or assurance conclusion, and doesn’t vouch for the numbers. I worked at SEC Enforcement for 18+ yrs. This is how I define “red flag.”
In addition, differences between Bitcoin’s total liabilities were noted. Proof of reserves demonstrates that Binance was 97% collateralized, excluding assets lent to users through loans or margin accounts, showing that the one-to-one ratio of reserves to customer assets was not met.
Source: MAZARS
In related events, Tether executives and Binance CEO Changpeng “CZ” Zhao were reportedly concerned about Sam Bankman-Fried on December 9. (SBF). The former CEO of FTX attempted to destabilize the bitcoin market to save the failed exchange.
The Wall Street Journal has uncovered messages from a Signal group conversation labeled “Exchange coordination.” This depicts a debate between CZ and SBF on November 10 concerning Tether’s stablecoin USDT.
Following a highly successful presale that raised a staggering $32,050,000, Retik Finance is poised to…
Ripple's upcoming stablecoin, backed by USD reserves, aims to enhance the XRP Ledger ecosystem, leveraging…
London, United Kingdom, May 6th, 2024, ChainwireGBM Auction (https://gbm.auction), the Bid-to-Earn Auction company, is thrilled…
The Layer 2 scaling solution for #Ethereum, #Polygon(MATIC), had a 120x increase in value in…
🚀 Today's Crypto Surge! FRONT, TRB, LAI, GFI, AGI lead gains! 📈 #CryptoNews #FRONT #TRB…
Out of all the meme currencies out there, three #HUMP, #Dogwifhat(WIF), and #ShibaInu(SHIB)—stand out as…