Earlier quoted context omitted.
It’s actually so nuts. People rarely get into the details of how crazy accounting was in Enron. They made an agreement to build a power plant, then booked 50 years of profit from operating it before they broke ground.
I knew about accounting for lifetime costs, but accounting for lifetime profits is a new one hahaha.
Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work
331–340 of 506 posts
Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work
#332"Binance has said it holds more than $60bn in assets, enough to honour withdrawals. The company’s disclosures do not include its liabilities, which makes it difficult to ascertain its financial health." Possibilities: 1) They're insolvent. Liabilities exceed assets. (Like FTX.) 2) Their accounting is so screwed up they can't produce a balance sheet. (Like FTX). 3) They have a large number of interconnected corporate…
All of the above and: 5) Binance does significant money laundering for Iran and Russia, so any complete picture of their balance sheet would invite sanctions and international retribution. https://www.reuters.com/business/finance/exclusive-crypto-ex...
This is interesting. Do you have any good links for the Russian connection!
Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work
#333Ok, so "web3-metaverse-blockchain" bubble is bursting, only the AI one is growing in a good direction.
Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work
#334Earlier quoted context omitted.
There are plenty of reasons for not using a Big 4 their prices being one. They are not the be all and end all of auditing.
Auditors are not for your company. Auditors are for your investors. Auditors are not your friends. If you are investing a large amount of money in a company, and they are using a non-Big 4 firm, then any problems are on you. I've routinely joked to my wife that her life would be much easier if they fired their auditors and went with BDO or some smaller auditing that they could bully around. The thing is, that's exact…
It’s not about auditors bring your friends. The Big 4 are only marginally better than their competitors and the Anderson scandal proved definitely that they are not in themselves a proof that things are fine. The idea that there is something fishy with companies not using the Big 4 as auditors is just wrong.
Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work
#335"Binance has said it holds more than $60bn in assets, enough to honour withdrawals. The company’s disclosures do not include its liabilities, which makes it difficult to ascertain its financial health." Possibilities: 1) They're insolvent. Liabilities exceed assets. (Like FTX.) 2) Their accounting is so screwed up they can't produce a balance sheet. (Like FTX). 3) They have a large number of interconnected corporate…
It’s “GAAP.” Generally Accepted Accounting Principles.
Of course. My bad.
Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work
#336Earlier quoted context omitted.
Is Coinbase audited?
Whataboutists have arrived to protect China-owned Binance
Even though I'm crypto agnostic, I'm diversified. I have some funds in Coinbase, but I don't really want to go to the trouble of maintaining a hardware wallet.
I'm way more likely to lose a wallet or mismanage it than not. As an anecdote, I had several million dogecoin from 2014 or so as a joke, which I think amounted to several hundred thousand dollars just a few years back. I couldn't find, figure out, or be bothered with moving it to an exchange before that blew over.
As for Binance, I had funds in it too before they closed their core operations in the US, and getting it back out was an extreme hassle.
As far as the substance of your comment, you'll find that my comment history is pro-Democracy, pro-Capitalism, so I'm not sure what you're on about.
Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work
#337"Binance has said it holds more than $60bn in assets, enough to honour withdrawals. The company’s disclosures do not include its liabilities, which makes it difficult to ascertain its financial health." Possibilities: 1) They're insolvent. Liabilities exceed assets. (Like FTX.) 2) Their accounting is so screwed up they can't produce a balance sheet. (Like FTX). 3) They have a large number of interconnected corporate…
is any exchange audited?
Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work
#338Earlier quoted context omitted.
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?
GP missing a /s.
Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work
#339Even an audited exchange like Coinbase that is trying to do everything right is still self reporting loses like $430M in quarter 1 of 2022 just by operating their business correctly. Not your keys, not your crypto. Anyone storing their crypto on any exchange has this risk.
> not your keys, not your crypto
what % of BTC is held in binance / crypto.com / coinbase?
if one of them fails/has an issue, how much more can BTC fall and then never recover?
what are the % chances something good happens to one of those exchanges and crypto value/demand goes up?
what are the % chances the inverse/opposite happens and crypto goes even lower?
Re: Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work
#340"Binance has said it holds more than $60bn in assets, enough to honour withdrawals. The company’s disclosures do not include its liabilities, which makes it difficult to ascertain its financial health." Possibilities: 1) They're insolvent. Liabilities exceed assets. (Like FTX.) 2) Their accounting is so screwed up they can't produce a balance sheet. (Like FTX). 3) They have a large number of interconnected corporate…
> 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...
You can have an audit on Monday and a founder transfer all the assets to an affiliate on Tuesday so timing risk makes this stuff irrelevant.
Maybe time to make crypto decentralized?