Topic: Binance's Alleged Crypto Audit Failed, Its Auditor Refused to Vouch For It (Read 445 times)

I completely agree with you! I'm just interested in the opinion, and the acceptability of the use of Binance now by forum members. I am also well aware that the scale of Binance’s influence on the entire crypto world is very strong, and any negative situations with Binance are guaranteed to negatively affect both the Bitcoin exchange rate and the entire crypto market at once.
Just in case, I withdrew the stocks that were on Binance, and use them only for the exchange operation. If there are no changes in the next 1-3 months, I will return back to the Binance accounts what I stored and used for regular trading

Since the decline in bitcoin continues to occur, there is currently a lot of negative news spread so that the future threat of the crypto world is getting worse and worse, and the auditor problem on binance is currently getting bigger and bigger even though the binance platform has been our mainstay for a long time and every problem there must be a way to be solved by the platform because we can see the CEO of binance always responding if there is a problem that occurs, Then don't equate the Binance platform with others, if this situation will continue then things will get worse in the future.

unlike fiat laws.
crypto does not have any divine right of ownership outside the 'key control' owneship

when handing funds to a business. you are then subservient to the contract with that business(the user agreement)

binance does not have the same harsh user agreement rules as things like greyscale
binance has a clear proof of reserves and you can see the binance wallets balance openly using the tags on bitcoinrichlist.

however remember #not-your-keys-not-your-coin

binance is allowing users better access to coins(withdrawing when closing account), even in situations of banning a user.. compared to other exchanges user agreements.

other exchanges also dont deem funds as customers and can without notice take coins without reason

so always read the user agreements
though the implied rights given by user agreement can only be fully enforced in court if there was a breach/disagreement

so always make sure where you stand when using these services and limit utility to just using them for that day. and not as a custodian over weeks/months whereby you are not actively logging in or using the service daily with your fingertips

I wouldn't count on SAFU if I'm were you. It may work for some smaller hacks, but when/if shit hits the fan, 1 billion USD won't save anyone. Worst of all, their SAFU fund mostly consists of their own tokens, BNB and BUSD (I read somewhere that those two make 75% of the SAFU). You can imagine how much those will worth if exchange ever gets into serious trouble.


Its all good as long as you are aware of the fact that every time you send money there, it might be the last time you see them. At least that's how I see it as I am Binance user as well.


It all depends what kind of trouble Binance eventually has. If ist something like FTX, not even CZ will be able (or even willing) to do anything

What I know also about with binance is they have insurance what you call SAFU.
We don't know the truth behind this audit, but I believe binance has enough funds to cover their customers.
I maybe biased as I am a regular user of binance, but I don't feel panic.
Maybe, don't store funds on them, but it is true to all centralized exchanges, right?
I don't think CZ will not be doing anything if there is really something wrong with their funds.

The difference is that we can see how much binance has via blockchain and we know that they are definitely rich enough to cover all the deposits, meaning why would we care about some accounting firm and what they say about the audit?

The regular companies that have audits do not have blockchain along with them, so you have to trust the company that does the audit, but in this case it's different because Binance could simply show the blockchain and their wallets and you will see that they have the money for it. This difference means that audit and blockchain mean different things, and a company that has blockchain usage doesn't really need audit companies approval.

Binance is probably doing all of those things you mentioned to an extent. When an exchange becomes that big, it is very hard to stay "clean". More or less some fuckery will happen anyway.

But are these will be enough to send binance to bankruptcy? I can't be sure. It all depends on how corrupted they became.

If they went full Gox, then yes, binance don't have much time left.

To disarm critics, nonbelievers, fudders. To create trust. Quite simple.

You have written quite competently what this concept means in accounting, but, unfortunately, this does not answer an important question! Why should audit be used and why is it useful?? Everything you've written can be done in exactly the same way via blockchain. Just why use audit?? If you can do exactly the same thing on the blockchain. Don't you think that's weird?? It seems strange to me. You may also wonder how reliable the audit is in general and is it possible to change the record in the audit? It seems to me that it is possible to change the record in the audit! But you can't change an entry in the blockchain. If you ask yourself these questions, you will realize that blockchain can do exactly the same thing, but with greater reliability. Thank you for your attention!

Yes, Audit is not a blockchain. Because Blockchain and Audit do not have a relationship in terms of definition and understanding, so the two need to be separated first so that it is easier for everyone to understand. And Quoted from The Economic Times, an audit is a bookkeeping check to a physical inspection to ensure a department within an organization or company has followed a documented recording system. _[reference]

I for once don't like binance due to its sice.
 
Nevertheless its unnecesary to develop conspiracy theories.
Its not in the interest of Crypto to fud crypto supporting companies without hard proof.

Currently, I'm just accumulating bitcoins, so I have no reason to store my assets on binance, but I still use binance for things like exchanges, and p2p transactions as needed.

I can tell you that binance is the biggest exchange in the market, and it is so big that Binance's trading volume is equal to 10 different exchanges combined. I'm not saying binance will never die, but if it crashes, we'll see bitcoin drop to $5k or less, and we'll experience a longer bearish season than ever. You can check out their assets and everything needed to prove how big it is at coingecko.

Thank you for your opinion. You try to explain it, but unfortunately you can't explain why audit is so useful. So you can log into the blockchain and check exactly the same thing. Audit is not a blockchain, and it cannot give more accurate information than the blockchain itself.

I think you shouldn't worry about the traders because I am sure that once they are done trading, they will then withdraw most of their money. Traders are wise guys. If there's one that you should worry with then that must be the investors because they may store their money inside a centralized exchange such as binance thinking it was safe because they also heard a lot of good feedback over the past years/months from this exchange and then some of them know about the SAFU thing that you are talking about there but other problems might still occur. This is why best way to HODL a crypto is only through a wallet that we personally control.

The most reliable way to check this is through the blockchain! Audit is not a blockchain, and then why is it needed?? That's why I ask, what is its advantage compared to blockchain??

CryptoQuant's Audit of Binance Reveals No 'FTX-Like' Behavior in Proof-of-Reserves

Binance Audited PoR Matches On-chain Data by 99% Says CryptoQuant

I would say that this case is not like FTX, and, moreover, I believe that the market is understanding it that way. With the FUD out there, if the big investors saw a parallel, the price would have dropped significantly by now.

It is normal that with everything that has happened this year, people are on the lookout, but this does not seem to be a case of accounting manipulation. I hope I am not wrong for everyone's sake.

A few questions about Binance:
1. Do you store assets on this exchange?
2. How big are they? You can not answer with numbers, at least at the level - significant for me / not significant
3. After the news about potential problems appeared - did you withdraw your assets from the exchange? If not, why do you trust Binance?

id suggest you double check the SAFU
https://academy.binance.com/en/glossary/secure-asset-fund-for-users
its SAFU for BTC is just 16,277 coins although user balance is over 500k coins.

so this is why users wanted a proper proof of reserves because safu wouldnt cover all reserves.. its just an insurance incase one of their hot wallets(on server withdrawal pots of 0.X% of reserves) got hacked. not an amount to cover the reserves should the reserves disapear in full

if you are a trader in binance, then make sure you are taking care of your funds. by the way, binance has SAFU in place, so i am more confident on this trading platform than others. so if anything goes wrong, they have insurance for their users. if they are having problems with the audit team, i guess, they are already silently rectifying it before it blows up just like what ftx scenario.

The purpose of audit is to see if Binance is reporting the correct numbers and if there’s irregularities most probably that could affect the financial capability of Binance. Anyway, so many fud recently about Binance and its hard to believe on those especially after the statement of Binance that they can accomodate 100% withdrawals and still able to function properly, that’s how confident Binance is so its not easy to ruin Binance with those fud.

I seem to remember making a thread about binance's USDC stablecoin gaining an option to receive funding from the federal reserve prior to the release of news story posted in OP.

https://bitcointalksearch.org/topic/m.61414675

Did they know binance's audit wouldn't return positive results ahead of time? At which time they scrambled to secure additional funding for assets like USDC?

The most likely scenario is binance having assets tied up with FTX, which were unfortunately destroyed during the crash. The behavior of assets invested in FTX would behave like the popping of a bubble. Which would foster wealth destruction, with no way of redeeming lost value.

Pretty interesting opinion. I am pretty sure that even Binance isn't free of all these nuisance, it's pretty much as involved as FTX in such things it's just that Binance is too big to be tug offed by just one person or small set of persons. It's too huge and obviously controls not only the market but media, whales and funds as well. But obviously if it falls the fall is going to be equally big. Moreover I even read somewhere that Binance opted Mazaars to audit then instead of the Big 4 which are generally popular in Auditing.

True, but we all know Binance isn't a ghost company--it's very much real, and it's a massive crypto exchange.  But man, now that they're under a microscope who knows what's going to be discovered?

To the questions posed by OP, I can only say that I don't have sufficient information to judge what state Binance is in or what its future is.  Kevin O'Leary seems to have it out for them, and he's apparently an influential person who might be able to influence politicians....but whether he's going to is anyone's guess.

None of this attention and none of the actions of SBF or statements by CZ are doing any good for crypto as a whole, IMO.  The whole space turned very ugly in less than a month.

It seems entirely possible because every big company that’s working just “fine” has dirty story behind it. There are only few companies which are really good at managing their funds without any third party interference or may be gambling their money with others. If binance is doing the same then I wouldn’t be much surprised because they have billion dollar company to handle and they have to have liquid cash flow all the time to handle the huge buy and sell orders. Imaging the managements and accounting in the stress all the time. It’s not funny, and it’s not safe either.

I don't quite understand what is the benefit of this audit?? Or what advantage does this audit give?? Similarly, it is possible to verify a transaction through the blockchain, but simply, what changes from this? II asked in one topic, but no one could clearly explain what exactly this audit gives. If it is not a blockchain, then it means that this audit is centralized, and what is the use of it?

The fud in my opinion has been week but it was enough to create over $7B in withdraws. If this way before the FTX collapse most likely nobody would withdraw. People just want to be safe. You can also send back.

Apparently this all started with some texts about some regulations coming which never came. But it was enough to stir up a lot of panic.

That and Kevin Olery blaming Binance for the FTX collapse.

Many projects that initially failed to audit but were successful and ranked up and had a marketcap of more than $ 5 billion, the audit team certainly worked according to the latest standards and they made, maybe there were things that were not or not adjusted so that it failed, but this did not mean that those who failed is a scam.

They have enough coin to cover all the bitcoins, but the detail is that there are a lot of accounting companies that require you to have both a bit more and also all other coins as well. Binance probably didn't show all other coins, and that's the issue.

Most of their wallets are already known and I doubt that it would change anything, I feel like this would be similar to what we had so far and I doubt that it would change anything in the slightest. I personally believe that the best thing to do would be just focus on withdrawals, Binance took advantage of this situations and profited a ton from withdrawal fees to be honest and they will recover, they are the biggest and I am sure they will recover.

the accounts of customer balance total.. and also the show of enough coin in binance control show that binance has enough coins to meet customer balance

HOWEVER this audit does not guarantee or prevent human decision to just say "nah we wont use these X00k coin to pay out to X00k customers. we want to buy a island to retire on instead.. bye"

so yes they have coin reserves that meet customer balance(if they choose to use those coins for that). but that does not mean those coins WILL be given to customers on a bank run via any robust mechanism that stops those coins being spent on cocktails on an island next week. month. year instead

the audit does not guarantee morals

thats the difference

proof of reserves does prove reserves.. but it does not prove human decision later

whats needed is a legal document/regulation that says those audited reserves are now locked to only be used for customer balance. if spent on anything else, go straight to jail do not collect $100


yep better safe than sorry

Yeah, that's what FTX people were saying too until the end, that's it just a FUD and we saw how that ended.


What Binance announced is self reported and can be manipulated in myriad of ways. If everything is fine and dandy, why even the company that did so called audit for them won't even vouch for it? Something fishy is going on, that's why.


I use Binance too, but that doesn't mean I have to close my eye to all the problems it have.


Take your money out of Binance as well, unless you want to say goodbye to it in case Binance goes down (and there is always a chance for that).

After all we saw these years and after what happened to the famous companies with many customers and high transaction amounts I'm not gonna be shocked if I see that's true and the CZ is going to be the next failer of the crypto industry.
Just compare FTX and binance you will see both are famous and bother platforms live for years, FTX failed and many people are unhappy about it, so how can we be sure not to see the same situation with binance in a few years?

Looks like Binance had been trying to control the markets by 'winning the hearts of all crypto users' by trying to defame FTX and even took advantage of the Luna and UST situation, but now it is becoming a pain in CZ's ass as the Spider who was weaving a net every time he got a chance, seems to be fell into his own trap. I smell something that could ruin the crypto industry in a very bad way that the trust will never be regained in it again.

Check this - https://markets.businessinsider.com/news/currencies/crypto-binance-reportedly-processed-over-10b-in-illegal-payments-2022-2022-12

US Department Of Justice's reports claim that over 10 billion USD worth transactions were processed as illegal payments and that Binance could be involved in money laundering activities.

If such allegations prove to be true and Binance shows up as guilty, everyone's trust will be broken so bad that nobody will turn to crypto again. We can only hope that CZ isn't involved in either money laundering or market manipulating activities.


Never keep your funds at any exchange for a long time, you don't know when you may see that exchange next to come up with a news like 'we are hacked', or misuse of funds just like in the case of FTX.
I always see and believe in those words of wisdom - Not your keys, not your coins.

According to Forbes it was 3 Billion. But i am skeptical this would end up like FTX, while there are similarities with case ftx. If Binance is solvent, this will make them only stronger. If not. It doesn't matter what altcoin you hold, because sadly in crypto, no coin is an island and everything is connected to everything else. Businesses invest to other businesses and everyone loans to everyone else. So if the biggest CEX would fall, everything would go down as deck of cards.

However i wish this is not the beginning of the end but just another shakedown fud where weak hands will leave.
https://cryptoslate.com/binance-clarifies-usdc-withdrawals-were-down-due-to-token-swap-replenishing-hot-wallet/

I am however withdrawing my tokens from binance.

It will definitely results to something worse that FTX drama and will lead to people leaving and removing the coins they have on Binance.

I see that Binance has seen a total remove and withdrawals of $1.9 Billion in the last 24 hours, but it would have been so wise and smart of those who did when the FTX drama came up.

Binance makes big profits from when they carry out transaction as transaction fees are one of the major ways if how they make profits, so the pull out of funds has both advantages and disadvantages to them.

yes it seems biased.
but if we wave a magic wand and rationalise the bias..

(in light of FTX)
it could mean that the reserves for customer funds be segregated away from the exchange CEO control and prevented from any chance of co-mingling with the exchange services own corporate funds/liabilities.. and an an extreme put into a independent insurance trust reserve that an exchange CEO can make daily requests to refiill a hot wallet from the insurance trust cold wallet. thus not allowing a exchange ceo  just grabbing at the funds at his whim

.. but
then we run into the argument "what if the insurance trust then grabs at those funds"
and so on and so on.
(in light of coinbases lack of disclosing its vaults of greyscale reserves, nor even letting greyscale know that coinbase is taking care of funds)

at one point customers need to "trust" the service they use is looking after their funds and the service itself finds itself accountable for any shinanigans. rather than having funds shifted outside the service.

I don't know about you but I am concerned that these news result in a greater push for cryptocurrency regulation should anything happen to binance. Additionally, it is likely to discourage people from investing in cryptocurrency. Lastly why does it seem to me that this is a script that is being played out we had the taran ola cars then we have the ftx and now buying us is facing a very tough battle why doesn't this seem like just a mere coincidence think about it.

Yes, everyone involved in the crypto industry is trying to manipulate it. Not all manipulating is nefarious.

Most likely they have offered platform for it at some point. They will close accounts if asked to, but i have a feeling that they aren't complying as much they should. Lawsuits against them are troubling to say the least.

If you mean that they secretly use investors/traders money to pump the price? That doesn't make any sense to me as a tactic. They would just lose solvency


Similar to FTX. But i wouldn't be worried about users only. It would be an extreme event and i would short everything i could in somewhere else. And after that i would leave crypto for years. Because recovery would take a long time.


That article seemed very biased against Binance, sentences like this are just ignorant:

What an earth is that writer even thinking. What does he thinks "extreme" means?

Everyone who spreads FUD, spreads unnecessary rumors because he short position is shooting themselves in the leg. Binance has announced its reserves. It is even the first to explain and can be seen online from the coinmarket. CZ has a lot of enemies because the reason is simple. The exchange owner at the top of the market by far. Like everyone else i trade on Binance. Binance is not only the largest market in the market but also almost the only market where there is liquidation and where buyers and sellers of all prices meet. This time the situation is different. If something happens to Binance or CZ, we can say goodbye to the market for a long time.

I highly doubt that they would do the same thing. FTX was big but not Binance big, we are talking about a company that bought cmc for 400 million dollars just because it looked like a good way of doing marketing, imagine how big they are. This is a company that makes billions and billions in profit every year.

There is even a theory that we should stop using them because with more trading fee that we pay, the more bitcoin they are getting meaning eventually they will be the monopoly on bitcoin because they have so much and can dictate whatever they want. No company that big would be stupid enough to make a move that would risk anything they have.

Binance has positioned themselves in the market and have a major player in cryptocurrency. I fear the extent of damage this news can generate against cryptocurrency. People are still managing the situation and nursing the wounds that FTX and Sam inflicted on the market, a problem with binance may finally become the end of some peoples believe in cryptocurrency. It will create panic that will surely have a show on the price of bitcoin making it to most likely drop lower.

Revenge drama or will everything be transparent in time? I don't really follow Binance news, because since their dispute with FTX, they are gradually going to get the same scheme too. But if indeed everything can be proven in court that Binance is also playing with users' funds, automatically all exchanges will undergo a thorough audit. It's already a risk for the biggest exchanges to find support, but fighting such a large influx must also be tough on Binance side.

Aside from this audit failure, there's another thing that's been with Binance and it came recently from Reuters.

~ Exclusive: U.S. Justice Dept is split over charging Binance as crypto world falters

This is a long read and too many details that are there but people right now are waiting what will be the response of CZ according to this news that Reuters has published.

a reserves audit is different to what you describe

binance shows the bitcoin addresses it has coin control over
also shows the user balance total

the numbers align. to show that binance does have funds on hand to cover balance

however separate from that people are questioning a morals of ethics of "but would he use those reserves to give to customers"

which is a whole different story.. not about reserves or proof of reserves but about desire/demand to decide to honour requests

if you have a credit card balance of $500
and you have a bank savings account of $505

it shows you have the capacity/reserves to pay the credit card bill when it comes due

but.. separate from that simple audit..
it does not prove IF you will decide to pay a debt at the end of the month or not or use your $505 on other novelty items.

---

here is what i would like to see
a signed and notarised statement from CEO&CFO of exchanges, with a court clerk as witness that say something like:

"these X bitcoin addresses serve the sole purpose of funding reserves of customers balances. should these reserve funds be used for any other purpose i plead pre-emptively guilty of fraud and accept any and all penalties sentenced to me in court. should funds be used outside of meeting customers withdrawal balance requests"

Weird audit...
Let me explain my idea. An Audit Specialist is a person who has an excellent understanding of the area he is auditing. The result of the audit, in this case, is to confirm or deny the presence of reserves. Reserves - they either exist or not. An audit based on the results can say: I analyzed the transactions: for such and such a period, I recorded transactions that arrived in cold wallets. The amount of income, like this, in such and such cryptocurrencies ... The balance at the time of the audit is like this. The withdrawal of funds amounted to such a sum. Dibit / credit converges, does not converge, the discrepancy is like this - an explanation of the additional expense - like this (these are all conventions, purely for example).

But if he cannot confirm or deny, this means that the person could not conduct a normal audit and obtain the necessary data. That's why I can't confirm or deny.

In my opinion, the fate of the Binance cryptocurrency exchange is being decided right now. 

What is happening now? 

Recently there was a collapse (bankruptcy) of the FTX cryptocurrency exchange.  As a result, Binance has come under the scrutiny of US regulators. 

In fact, the regulator can easily make claims against any financial company.  And these claims are true.  Binance is a huge financial structure, in relation to which it is not even clear where exactly its parent company is located. 

I think if Binance can protect itself and its interests now, it will function for a very long time, and the BNB token will reach the price of $5,000.

comparing the user agreements and policies of for instance
binance vs greyscale

customer "bans"
binance when banning a customer still allows a customer to log in, but features disabled like trading. the customer is given time to withdraw value close account and leave

greyscale says they can decline all access and deny use of all of their site for customers that are banned without notice or reason

custody of funds
binance shows bitcoin addresses of bitcoin funds that total the same total of customers balance

greyscale, tells customer it does not hold custody of funds, its locked in coinbase "vaults" and coinbase has a security policy to not disclose. coinbase is not regulated by SEC or CFTC

im more concerned of the contagion of the DCG portfolio of exchanges which includes coinbase and greyscale, oh and until recently(after collapse) FTX

I think it has the best interest of itself in mind. It's just become quite present on social media and in crypto that it can look to have the best interests of its customers in mind.

It may find ways to serve both but I doubt it'll hold back if it finds (more) ways to exploit its customers (like when they kept withdrawal fees far higher than they had to be - though they might've just realised they were funding their competitor).

Which leaves at least me to question why they've done this now? Why?

Less competition = more customers coming to you. Why would you want to get an audit done where you aren't certain you're going to pass the audit? Binance isn't great at dealing with regulators, perhaps it's just not great at communication except for some who want to believe what they say and not verify their claims.

Either that or this is some plan to keep them in the news, maybe to make those who didn't want to do kyc come back or to make those who did want to use them more - there's presumably a lot of people who have used futures to gamble in the past and it's "good" free advertising for that.

The problem with most of these exchanges is that their financial transactions most times are shredded in secrecy. This shouldn't be the standard for exchanges because customers deserve to know where and how their money is used. That was how FTX claimed that they had their customers at heart. Just like FTX is might be possible that Changpeng Zhao is running Binance like his personal business.

The most important factor is financial business is trust. And trust is build when clients are sure that their funds are in safe hands. And a transparent audit report is very important to boast the confidence customers have in your business.

I am desperately hoping that this news is just another media stunt. This is because Binance is a big player in the cryptocurrency industry that any financial disruption would really affect the market negatively. There have been reports that some exchanges are manipulating their financial dealing to outsmart competitors and gain customer's trust. But auditors should be able to vouch for a company's finance dealings if they are clean, standard and  accurate.       
 

While I don't have much faith in that news source because I've never heard of it before, as soon as you hear these kind of rumors it can be rather unsettling. These are the sort of small indicators that you might have heard about FTX a few weeks or even months before the total collapse of it. Not only that, even if the company is perfectly solvent, if such talk starts to work it's way around then it can create a domino effect that turns a healthy company into a company ready to collapse. I just hope that Binance have been wisely reinvesting all the obscene fees that they've managed to collect over the years from their many customers, dunno if they still do it but that put me off them for good.

I won't jump into conclusion until everything is cleared and all accusation has valid proof.  We cannot trust media nowadays since most of them are created or paid with malicious intent.  I believe this news is possible a derailing tactics so that attention of people will be shifted on Binance issue rather than the current investigation of FTX. 

Those who said about any problem or issue on Binance should provide a valid proof, if there is none then all of these negative thoughts are just rumors.  Auditor refusing to vouch for Binance audit probably has deeper reason why they are not doing it.

I have to say it is not really that much of a big deal compared to what we have seen with FTX, at the very least we are talking about Binance showing their papers to a place, there could be some disagreements on how the calculation should be made, but at the very least it is shown and that's what matters.

If there was a big deal like it is empty, then they would say that and it would be obvious, but since it is not empty then we know that it may or may not be 1:1 ratio, but at least it is filled a bit. This is a good thing, we should be able to use this to feel better if we want to, if you don't feel that way, just take your money out, binance is open for withdrawals.

After what happened to the ftx platform, confidence in all platforms is declining in succession.  An emerging market that is barely more than ten years old, it is only natural that management systems are not appropriate for it.  Unfortunately, users are affected by the reputation of the provider, and when the options are limited, the pressure is less.

sometimes i see these allegation topics as just childish stories. yes some lessons can be learned from them. but sometimes they are stories about "could be" and not actual events or future plans

which is where i tailor my analogies into childish concepts for those readers

however
FTX has done a event where they were caught not having assets to meet demands.
people done a bank run.
withdrawals were locked and ftx filed for bankruptcy, and evidence of theft and fraud are seen..
.. yet some people are still unsure of how legit or illegit ftx is/was

..
where as binance has not done anything (if/yet) to harm customers. and people are pitchforking it.

yes get your coins out dont use exchanges as a custodian. but i see this latest saga against binance as just revenge social drama of trying to find blame for those that lost due to ftx

EG
imagine your dad was a serial killer but a victim witnessed his crimes and got him arrested. and you lost contact with your dad. instead of realising your dad is a serial killer and deserves everything he gets, you are victim blaming the witness

its that simple
people are trying to get the victim/witness credibility put into question

i dont use exchanges as custodians so i dont care much for the social dramas personally as they cant hurt my holdings.. best case is everyone else get theres out to so you lot dont have to care either

yes be risk aware, learn what risks there are. but dont put yourself at risk

(dont hold onto your gold stars till the weekend hoping for your chocolate bar. claim your chocolate bar as soon as you earned your chore board stars. know that your moms can steal your chocolate so dont give her time to get tempted.)

I think if binance is found culprit after scrutinize this will lead to very worse outcome for cryptocurrency and it will drop the price. Binance is big and popular with trust of investors not minding it is centralize exchange so people won't have any more trust with exchange and they like to keep the coins within them and that will create dull moment for cryptocurrency. Exchange transaction help the trader alot and if binance go down, it will affect every body.

In my opinion Binance does have the best interests of its customers in mind, but investors and traders should be aware of the fact that auditors cannot verify client funds, only how they are held. As far as I can tell, this is standard for most exchanges. This doesn't mean that your funds aren't safe on an exchange, but you should pause to consider how these exchanges hold their customers' coins.

the PoR

is a data structure that shows binance customers balance is accounted for and combines to a total
also binance shows they have coin control of an alotment of coins that meet and exceed that total accounted total

..
the objections are that some beleive that it does not include the companies own private assets and liabilities.

but that is a separate account report with a separate report.

also objections about binance not revealing all its corporate entities.
again this is separate to the customer accounts/PoR stuff


the fear becomes that some hidden parent company could claim ownership of the coin control of all assets. whereby "binance" as a daughter/sister company could be sent into some legal system of administration where it locks customers from redemptions. and prevents payouts while then not honoring the use of the coin control assets to be used on those customer due to some hidden contract under the parent company that customers are not aware of


..
its a simply family 'chore board' where having 4 stars on a chore board = 1 chocolate bar reward at end of the week
where they can clearly say the kids have a total of 8 stars= 2 chocolate awards
and the big sister can show 2 chocolate bars in the fridge waiting for the end of the week.

however mommy can be malnourished(in debt) and may want to take the chocolate out the fridge to eat for herself to make her heathy. leaving the kids then under nourished. and thats the fear.

the fear that if kids complain they didnt get their chocolate and its found out the chocolate is not in the fridge. big sister(binance) as kid babysitter and the family fridge gets locked up with the kid in social services disputes(regulators)
but the parent is not disclosed/ put into a social services investigation.  and is instead sunning it up on a beach with a full tummy

I found a similar  article here
https://cointelegraph.com/news/binance-s-proof-of-reserves-raises-red-flags-report


This is quite odd. Looks like a ghost company.


And in the end, the publish all that useless garbage they call "proof of resertve" and they don't have all of it!

Binance says an audit shows proof of reserves of customer funds. But its auditor will not vouch for the reserves nor the methodology demanded by Binance.

What do you think ?

1) Is Binance manipulating the crypto industry

2) Is Binance involved in any sort of money laundering

3) Is BNB being inflated at the cost of investors/traders money

4) What will be the fate of users if Binance in any case will be scrutinized and found to be a culprit


https://mishtalk.com/economics/binances-alleged-crypto-audit-failed-not-even-its-auditor-would-vouch-for-it