Chart courtesy of CoinMarketCap, annotations by Mish
A wave of selling is hitting Binance right now in the wake of crypto concerns in the fallout of FTX.
To see it, let’s take a look at the past week.
Binance BNB Last Seven Days
Binance Says Accounting Firm Mazars Pauses Work for Crypto Clients
The Wall Street Journal reports Binance Says Accounting Firm Mazars Pauses Work for Crypto Clients
Cryptocurrency-trading giant Binance said the accounting firm it used to verify its reserves has paused all work for crypto clients, hampering efforts to reassure customers that their money is safe.
This week, Binance experienced a sharp increase in customer withdrawals, with roughly $6 billion in net outflows between Monday and Wednesday. The company didn’t specify what percentage this represented of total customer deposits. Earlier in the week, it said outflows were around $1.1 billion. The Binance spokesman said the company was able to process the withdrawals “without breaking stride.”
“We will continue to engage with reputable audit firms in 2023 and beyond as we seek to increase transparency across the entire industry,” a spokesman for Crypto.com said.
Binance’s proof-of-reserves report consisted of a five-page letter from a partner at the South African affiliate of Mazars. It contained three numbers and didn’t express an opinion, meaning the auditor wasn’t vouching for the numbers.
The FTX crash underscored the dangers to auditors of getting involved in what is largely an unregulated arena, industry watchers said. Two U.S. accounting firms signed off on the financial statements of FTX units.
Trust Us, the Money’s There
All of the cryptos that have blown up have made similar statements. Why is this one supposed to be any better?
Defrost This
Ducking Questions Twice
CZ is CEO of Binance
Luna Flashback
Scroll to Continue
Most Opaque Company in History
Anything Else?
Other than no board, no CFO, no financials, no domicile, no list of liabilities, an opaque parent company, and a CEO who routinely ducks questions, everything else looks fine and dandy except one small detail best covered by a couple of questions.
- Even assuming the money is there, what possible reason is there for BNB to go from 11 cents to 661 dollars?
- Even if the money is there, why can’t and shouldn’t BNB crash back where it came from?
That’s OK. I am told this is all FUD.
SBF Arrested, Charged With Wire Fraud, Securities Fraud, Money Laundering
In case you missed it, please note that FTX founder Samuel Bankman-Fried, better known as SBF, faced similar FUD.
Curiously, SBF Arrested, Charged With Wire Fraud, Securities Fraud, Money Laundering
Hmmm. Fancy that, SBF arrested over FUD. Well, I am quite sure that can’t possibly happen again.
Then again…
This post originated at MishTalk.Com.
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