Binance is trying to calm investors, but its finances remain a mystery
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Re: Binance is trying to calm investors, but its finances remain a mystery
#2Archive
Re: Binance is trying to calm investors, but its finances remain a mystery
#3Binance is even more shady than FTX. They are most likely not solvent. Personally, I'd move all my funds off binance to off-exchange wallets for the time being.
Re: Binance is trying to calm investors, but its finances remain a mystery
#4From TFA:
> The reserve report, released Wednesday, is a five-page letter from a partner at the South African affiliate of the global accounting firm Mazars. It contained three numbers. The letter wasn’t an audit report, didn’t address the effectiveness of the company’s internal financial-reporting controls, and said Mazars did “not express an opinion or an assurance conclusion,” meaning it wasn’t vouching for the numbers.
> Mazars said it performed its work using “agreed-upon procedures” requested by Binance and that “we make no representation regarding the appropriateness” of the procedures.
This sounds like a Binance paid for a brand name on an empty report, while providers of said brand name (Mazars) are doing everything in their power to distance themselves from factual claims about Binance's solvency. Am I missing something here?
Re: Binance is trying to calm investors, but its finances remain a mystery
#5Even if Binance is 100% solvent, big crypto money needs to be stored with multisig between multiple companies.
I advise everyone to use casa hodl for storing btc and eth if they are afraid of doing it themselves.
Re: Binance is trying to calm investors, but its finances remain a mystery
#6Binance is even more shady than FTX. They are most likely not solvent. Personally, I'd move all my funds off binance to off-exchange wallets for the time being.
It's difficult for anyone to be more shady than the people who stole ten billion dollars from their customers.
Re: Binance is trying to calm investors, but its finances remain a mystery
#7From TFA: > The reserve report, released Wednesday, is a five-page letter from a partner at the South African affiliate of the global accounting firm Mazars. It contained three numbers. The letter wasn’t an audit report, didn’t address the effectiveness of the company’s internal financial-reporting controls, and said Mazars did “not express an opinion or an assurance conclusion,” meaning it wasn’t vouching for the nu…
Nope. That's pretty much the gist of the whole shenanigan.
As a former CRO, it's not unheard of but quite uncommon to do this. Because normally it has the opposite effect.
It should have been only audited financials. But the Big 4 have failed us spectacularly in recent years.
Re: Binance is trying to calm investors, but its finances remain a mystery
#8From TFA: > The reserve report, released Wednesday, is a five-page letter from a partner at the South African affiliate of the global accounting firm Mazars. It contained three numbers. The letter wasn’t an audit report, didn’t address the effectiveness of the company’s internal financial-reporting controls, and said Mazars did “not express an opinion or an assurance conclusion,” meaning it wasn’t vouching for the nu…
> Am I missing something here?
Nope. I can produce a similar report for 60x+ my net worth. Bank account snapshots, wire in wire out. Leveraged assets, debt ignored. This is all marketing aimed at the financially illiterate.
Re: Binance is trying to calm investors, but its finances remain a mystery
#9From TFA: > The reserve report, released Wednesday, is a five-page letter from a partner at the South African affiliate of the global accounting firm Mazars. It contained three numbers. The letter wasn’t an audit report, didn’t address the effectiveness of the company’s internal financial-reporting controls, and said Mazars did “not express an opinion or an assurance conclusion,” meaning it wasn’t vouching for the nu…
Yes.
Agreed upon procedures is a standard non audit report done with a particular target use case in mind.
They can be very valuable or complete garbage. It depends on its design and purpose. The disclosures you quote are standard and would form part of any agreed upon procedures engagement. There is no nefariousness at play.
However, the better questions are:
1- Does this report result in meaningful assurance and if so, why 2- Why isn't here any audit report
Re: Binance is trying to calm investors, but its finances remain a mystery
#10Binance is even more shady than FTX. They are most likely not solvent. Personally, I'd move all my funds off binance to off-exchange wallets for the time being.
It's difficult for anyone to be more shady than the people who stole ten billion dollars from their customers.
> difficult for anyone to be more shady than the people who stole ten billion dollars from their customers
We literally don’t know where Binance is. It’s absolutely shadier than FTX, if a better-run scam.