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Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work

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Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work

#321

Post by SturgeonsLaw »

dicomdan wrote: post #303
not_enoch_wise wrote: post #242

A company under criminal investigation might have solvency issues? Someone got a set of pearls I can clutch? https://fortune.com/crypto/2022/12/12/binance-investigation-...

Binance is China-owned so there's no problems, all criminal allegations are false, company is in great shape, and customer's assets are safe. What about Coinbase?

You're posting pro-Binance, pro-China comments all over this thread

> company is in great shape, and customer's assets are safe

Do you have any proof of this? I assume that to know this for sure, you would have some insight into Binance internals?

Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work

#322

Post by [deleted] »

moffkalast wrote: post #319
jefftk wrote: post #250

Earlier quoted context omitted.

> Full GAAP audit or we all assume you're broke. FTX passed a GAAP audit and was still broke. Safer just to take custody of your coins while your still can. 2021-08-27: " Both FTX and FTX.US have completed requirements to pass the US Generally Accepted Accounting Principles (GAAP) audit " https://blockworks.co/news/ftx-joins-coinbase-kraken-with-us...

Binance just unverified everyone yet again , it's safe to say they're trying to prevent people from pulling out.

[deleted]

Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work

#323

Post by hef19898 »

jefftk wrote: post #273
fabian2k wrote: post #264

Earlier quoted context omitted.

FTX had many parts, did that audit actually cover all of them or was that just for a subset of companies?

It probably didn't cover all of them: all of the announcements I can find from the time just talk about FTX US and International. But if you're trying to decide whether to keep your money in another exchange, and they talk about how they have passed a GAAP audit "did the audit actually cover everything I care about" is still a live question.

No need to speculate, there were to seperate "audits", which were unrelated from each other, and only covered parts of the enterity of FTX. And Pager Matis' selling point seems to have been a Metaverse HQ...

Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work

#324

Post by jefftk »

eftychis wrote: post #288
jefftk wrote: post #250

Earlier quoted context omitted.

> Full GAAP audit or we all assume you're broke. FTX passed a GAAP audit and was still broke. Safer just to take custody of your coins while your still can. 2021-08-27: " Both FTX and FTX.US have completed requirements to pass the US Generally Accepted Accounting Principles (GAAP) audit " https://blockworks.co/news/ftx-joins-coinbase-kraken-with-us...

I don't think FTX actually applied or passed GAAP. From the filings it is clear they couldn't have. They barely have records of their liabilities, and definitely not of their assets. I am not even touching co-mingling of different classes of accounts. The statement you are referencing is another lie to customers and investors. I know they employed a "Decentraland" sketchy "auditor." But that's it. It is like employin…

My point is not "FTX's books were in good shape"; with the benefit of hindsight they clearly weren't.

Instead, my point is that an exchange saying that they passed a GAAP audit isn't the level of positive signal my parent seems to think it is.

Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work

#325

Post by clay-dreidels »

supernewton wrote: post #278
fshbbdssbbgdd wrote: post #268

Earlier quoted context omitted.

Money in general has transaction costs - even cash decays every time it changes hands. Is it all a negative sum game? It seems that in order to make that claim, you need to make some comparison between the value produced and the costs incurred. IMO, crypto is pretty scammy but there is some value (note that crypto is most popular in countries with unstable economies and corrupt governments). A crypto that’s optimized…

Money in general are traded for productive goods and services , not other kinds of money. That's why it's not negative sum. If you had a bunch of people trading between USD and GBP amd EUR and doing nothing else, that would be negative sum and look an awful like what people do with cryptocurrency.

No post body was provided.

Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work

#326

Post by brazzledazzle »

jefftk wrote: post #324
eftychis wrote: post #288

Earlier quoted context omitted.

I don't think FTX actually applied or passed GAAP. From the filings it is clear they couldn't have. They barely have records of their liabilities, and definitely not of their assets. I am not even touching co-mingling of different classes of accounts. The statement you are referencing is another lie to customers and investors. I know they employed a "Decentraland" sketchy "auditor." But that's it. It is like employin…

My point is not "FTX's books were in good shape"; with the benefit of hindsight they clearly weren't. Instead, my point is that an exchange saying that they passed a GAAP audit isn't the level of positive signal my parent seems to think it is.

Reading it doesn’t it say they have completed the requirements to pass but haven’t actually passed? Seems like the kind of word play that should send red flags.

Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work

#327

Post by Scoundreller »

xiphias2 wrote: post #63
ProjectArcturis wrote: post #32

"To prepare a proof of reserves report, an auditor uses procedures agreed with the company but does not vouch for whether those procedures are appropriate. The auditor also does not give any assurance or opinion over the numbers in the report, as it would in a full financial audit." What does it say that a lower-tier accounting firm wouldn't even complete this garbage process?

Cz said to CNBC that the big four can't audit a crypto exchange. Then the reporters told him that Coinbase is audited by Deloitte. He didn't really have an answer, it's quite awkward clip.

They might both be right. The big4 aren’t really each a homogenous group, rather each country is its own partnership (I think the central registrations are all now in Switzerland).

It’s possible the USA Big4 will touch a crypto firm and… wherever Binance is based… they won’t.

Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work

#328

Post by kevin_thibedeau »

jefftk wrote: post #324
eftychis wrote: post #288

Earlier quoted context omitted.

I don't think FTX actually applied or passed GAAP. From the filings it is clear they couldn't have. They barely have records of their liabilities, and definitely not of their assets. I am not even touching co-mingling of different classes of accounts. The statement you are referencing is another lie to customers and investors. I know they employed a "Decentraland" sketchy "auditor." But that's it. It is like employin…

My point is not "FTX's books were in good shape"; with the benefit of hindsight they clearly weren't. Instead, my point is that an exchange saying that they passed a GAAP audit isn't the level of positive signal my parent seems to think it is.

They didn't say that they passed, just that they claimed to "complete requirements" needed to pass. The financial engineering version of lying with facts like "assembled in USA from foreign components".

Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work

#330

Post by jefftk »

kevin_thibedeau wrote: post #328
jefftk wrote: post #324

Earlier quoted context omitted.

My point is not "FTX's books were in good shape"; with the benefit of hindsight they clearly weren't. Instead, my point is that an exchange saying that they passed a GAAP audit isn't the level of positive signal my parent seems to think it is.

They didn't say that they passed, just that they claimed to "complete requirements" needed to pass. The financial engineering version of lying with facts like "assembled in USA from foreign components".

They claimed to have passed:

2021-07-21 "Yesterday, FTX became the first (?) crypto derivatives exchange to complete a GAAP audit!" -- https://mobile.twitter.com/sbf_ftx/status/142135472191111577...

2021-08 -26: "Both @FTX_Official and @ftx_us have passed US GAAP audits and plan to continue getting audits going forward." --https://twitter.com/SBF_FTX/status/1431087427154849795

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