Binance Auditor Halts All Work With Crypto – 231

In the spokesman review which actually I Had to go find this and dig a little bit Deeper uh to find this actually an Accountant that vetted finances reserves Halts all crypto work now what was Happening here first to give you some Some background the research that I did Before we decided to pick this article Is that there's been a claim or there's Been claims in floods surrounding Binance and that binance may be in Trouble and that their audits and their Reserves are going poorly now the audit News today was wow wait binance's audit Got paused or put on hold however that's Not the complete story the accountant That vetted it paused all work on crypto So there's probably something deeper Going on here but of course once again For the clicks and so that you guys Clicking so that people click the Articles and everything happens of Course the main news is going to focus On oh binance in trouble don't worry About it let's go ahead and see exactly What's happening right so the first Thing I want to point out is the Spokesman review also has a tab here Purely for marijuana and it is in Spokane Washington and that is a little Bit funny because obviously we were Talking about click bait right before This but The mazars group the accounting firm

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Used to are used by giant binance Holdings Limited and other big players In the industry to vouch for their Assets held in reserve has halted all Work for crypto clients dealing a blow To an industry seeking to shore up Confidence in the wake of the FTX Collapse the French firm suspended work For cryptocurrency firms because of Indications that markets haven't been Reassured by the proof of reserves Reports it had published so far According to an email from the fir from The Firm seen by Bloomberg News so Essentially what the firm themselves are Saying that the markets aren't reassured By their work anyways Interestingly like you wouldn't expect The company that's hired to actually do The work quit the work based on the Reception of the work I'm meaning I'm not sure that this is The whole story right like if you're Being paid to do a job and you believe You're doing your due diligence and the Best you can do at that job the The public discourse surrounding your Results uh shouldn't sway you one way or The other if you are absolutely positive In your work at least in my opinion The Firm has also was also concerned about Intense media scrutiny the email said so Well it's it's almost like they're fear They're they are fear they're fearful of

Being canceled which is kind of odd Right Um mazarus has indicated that they will Temporarily pause their work with all of Their crypto clients globally a Spokesperson for binance said in a Statement to Bloomberg News Friday Unfortunately this means that we will Not be able to work with mazarus for the Moment Amazon's uh or a mazar's Spokesperson said the firm will issue a Statement in due course declining the Comment further the decision is a Setback for an industry that's been Trying to bolster its credibility with Investors following the collapse of Crypto exchange FTX which has been Accused of misusing customer funds Auditors have faced similar backlash in Recent weeks given the Ft that FTX Itself had engaged such Services prior To its collapse that seemingly missed Any warning signs cryptocurrencies fell After the report with Bitcoin down as Much as 2.7 percent in early Europe Trading BNB the native token of binance Smart contract chain fell as much as 4.5 Percent paris-based mazarus has been at The Forefront of the cryptocurrency Industries rush to conduct proof of Reserve reports for the likes of binance And other large exchanges including Crypto.com and kucoin now if you recall Crypto.com did get their proof of

Reserves out but how valid is the proof Of Reserves If you are in this situation once again Where you are performing your due Diligence and you are confident in your Report and you are actually reporting as A third party to the best of your Knowledge at to the best of your Capabilities in all honesty and you are Principled and you have good ethics I do Not see a reason why you would stop So that does mean that not necessarily Calling crypto.com into question here But definitely calling the results of The proof of reserves into question Right what I see here is a lack of Confidence in the work that they have Done and that is a red flag in my humble Opinion so I wouldn't trust any of the Proof of reserves for crypto.com or Kucoin at this particular moment right That's kind of how I read this I'd like To hear what you guys think in the live Chat and the comment section below Proof of reserved reports have face Green tea as they are not comparable to A full audit and that they show a firm's Assets not its liabilities and instead Service snapshots in time to that say Information provided by clients broadly Checks out and that's a fair assessment Because as we saw with the liabilities In FTX there were 8.9 billion dollars in Liabilities at FTX and then they were

Claiming eight billion dollars in assets Which means even if you were looking at The proof of reserves and they all Matched up FTX was still in trouble but You compound that with the fact that a Majority of it was backed by a token That had no backing in and of itself and You end up in the position that FTX is In so what does this mean well it means That even if you have a position like Crypto.com or one of these others that Can prove that they have the assets Within custody it doesn't necessarily Mean that they are free from all Liabilities and that is kind of where This is all called into question right Three these disclosures have failed to Calm investors with many opting to pull Their tokens off exchanges in fear of Further implosions over the past two Weeks a net for 554 million dollars in Stable coins in more than two billion Dollars in Bitcoin and ether have been Withdrawn from centralized exchanges According to data from crypto Quant Though this is largely stable lies Compared to the mass withdrawals seen When FTX collapsed early in November Another note about this is that this is Par for the course and I want to Everybody that if this is your first Cycle sit back relax and enjoy and and And be prepared to just learn and Understand how all of this stuff plays

Out This is not dissimilar from any other Cycle in fact it is exactly what Happened last time and the time before Right that what you see is essentially You start to find where the Bad actors Are where the poor business planning was And you start to figure out what all of That was it all starts to fail and Basically all of the retail investors Start to realize that they better Self-custody and a whole new generation Of crypto users learn to self-custody in Fact you would almost say that this Particular this these particular events Are required for cryptocurrency to move In the proper direction what do I mean By that right well we have two Directions that we're heading into we're Either heading into full centralized Custody by federal governments basically By nation states with cbdc's where they Monitor and and protect the assets and Tell you how much asset you can have and Put an expiration date on it like we saw In China which you're going to be Talking in the after party about lots of Crazy stuff or you get into full self Custody and you have Financial Sovereignty and the individual Self-custodies does it take more Responsibility is it more difficult yes But with great power comes great Responsibility right this is the this is

The actual basis of the fundamentals of Cryptocurrency that is being learned by The new generation of cryptocurrency uh Like uh cryptocurrency users so what I See now is basically a fast generational Cycle of about four years right where we Go through the same pattern every single Time all the flood happens all the People that are going to stick around in Cryptocurrency are gonna learn the hard Way about self-custody does that mean That you have no interaction with any Centralized platform ever of course not At this point we are in the position of A hybrid grid setup I get the idea of hybrid from basically My experience as a cloud Solutions Architect and where that basically comes From is the idea that you have a hybrid Server where you essentially have Exchange still on-prem and then you have Exchange in the cloud and they Communicate and it's called hybrid you Basically are moving from an old Technology to a new technology you can't Fully move over to the new technology so You have to have an interim hybrid set Up to basically compensate for that the Hybrid connection tool here is a Centralized exchange and it connects the Old world to the new world and it will Be necessary in this move and in this Transition to a digital currency Especially if we want that actual move

To go in the proper direction which in My humble opinion would be the kind of Self-custody portion here now there are Of course attacks already coming down The line We have basically the idea that They would Block in the United States All self-custodial wallets right you Would not be able to deposit to a Centralized exchange from a Self-custodial wallet that is on the Table right now we have the sanctioning Of tornado cash removing the Privacy Options from cryptocurrency you're Already not allowed to utilize any Direct exchange between any privacy Privacy crypto and the Fiat US dollar Right or the US dollar in general you Can't go straight from Monero to that All of these things are starting to Break apart what ends up happening right Is that they have to they will end up Kind of breaking apart completely and We'll have to see where things go A lot of people think that we are headed Into Central Bank digital currencies and While I do see that and I can definitely Sit down and look at it realistically And say okay well maybe you're correct Bitcoin was a cool experiment it failed And everything is going in the path of Central or Central Bank digital Currencies there is still the variable Of banks now of course cryptocurrency Fundamentally says that we would

Basically remove the interference of any Third party including Banks but Banks Play a very significant role in the Battle that is about to ensue over of Course basically control of money and That is because if the federal Governments or federal government the U.S or if any nation states across the Globe decide to start moving into the Direction of Central Bank digital Currencies and directly interacting with Their citizens and removing the banking System the banking system will fight Back so we end up in a very interesting Position where moving forward the banks Are kind of going to be the front line Defense against a central bank digital Currency and this is where the argument For probably something like xrp does Make sense from the aspect of if we are Talking about setting precedence in the Court of law so I think that this is Kind of how I lay it all out that I've Been talking about and playing with it Philosophically I'd like to hear your Thoughts poke holes in it let me know What you think in the comment section Below as well as in the live chat I find It absolutely fascinating and once again I gotta say I do feel very blessed to Actually be alive during this basically Financial transformation Financial Digital transformation because nobody Else is going to like they're very like

Very few people that get to live through This and see it and actually understand To a certain extent where we're sort of Headed right and it's cool to see a fork In the road and know that as as uh as Humanity we are going to get to choose That fork in the road to a certain Extent yes you might feel powerless but You really aren't like you can influence The direction we take by educating People by talking to people about what's Happening and this isn't you know I get It like cryptocurrency across the board Especially over this previous Bull Run Has been primarily about making money Right that's everybody got into Cryptocurrency initially For the most part right to make money Nobody really other than you know Satoshi himself and some of the original Founders got into it purely out of some You know uh altruistic motive right no It it started out to make money but Hopefully what you start to see is You've been in it is you care a lot like For me personally I care a lot less About number go up and a lot more about What it's enabling people to do stories Like you know the stable coin uh protect The the ability to purchase stable coins For protection against inflation in Argentina the ability to purchase Digibyte in Venezuela to protect against Inflation these types of stories are the

Stories that I lean on especially when We start to get into this sort of Situation of a bear market right because We don't have that number go up Excitement but there is still that use And there is still that that That hope that's there right and and I Want to make sure that everybody's aware That that's still there Um the cryptocurrency sector has long Been plagued with a lack of establishing Auditing standards the consequences of Which were laid bare in the recent Unraveling of FTX the exchange's Co-founder and former CEO SBF was Arrested this week in the Bahamas and Faces civil and criminal charges in the U.S for wire fraud among other Allegations now this is something you do Want to take a look into there is Apparently a possibility and I gotta I'm Going to be working on this story here Soon but my my understanding is there is A possibility that large uh transactions That were the that were going through Um FTX could you know Target other Individuals that were participating Within FTX I'm not sure how much Validity there is to that maybe you guys Can help point me in the right direction For the Articles surrounding that right But let's go ahead and continue uh The John J Ray ftx's new CEO told U.S

Lawmakers on Tuesday that the defunct Exchange had used accounting software QuickBooks to try to keep track of its Finances a system he said was wholly Unsuitable for a company of its size FTX Had previously engaged auditing Services By our main uh armanino LLP and Prager Medicine CPAs LLC Ray said that FTX had yet to go through Armanino's recent audit of the firm's Books quote we do have uh to look Through the books and records and look At the audits themselves and see how Comprehensive they were to see if the Audit would have picked up anything else That we or anything that we see Ray said Certainly we're going to look at the Related party's disclosures that were in Those audits whether there's any Footnotes or exceptions now I'm going to Jump through most of this because the They're going into FTX news I think you Guys are all caught up to date on FTX News the real question that we had here Of course was you know is there any is There any validity to binance being in Trouble because of the auditor's uh Deciding to no longer participate in the Audit and the answer to that in short Is no because we didn't actually get any Information on it however it does mean That it pulls into question of whether Or not the auditing or basically the Proof of reserves numbers for kucoin and

Crypto.com are valid or not and I think Bringing those into question uh is more News and a better news headline that it Serves the public better than whether or Not binance is in trouble right now Right it it basically says hey you need To be asking more questions of these Centralized exchanges and get you know Basically more information from them as As to what their liabilities are Compared to their assets right that's Really what it's about and so you can't Just take a headline like this and run With it and say you know binance is Insolvent or whatever Um you can't do that right now probably As fast as the news is moving by the Time time we end this you never know Binance could go insolvent before I even Post this video all the way it's just The nature of the Beast right now in Cryptocurrency news but does it Inherently mean anything's wrong with Binance no but it does call into Question their previous work that's Pretty much how I end that thanks for Checking out this clip from the crypto Mining show you can check out the full Episode here or more crypto content down Here also I'd like you to check out my Locals page at son of a tech.locals.com Where you can become a member for free Or choose to be a five dollar a month Supporter that unlocks additional

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