Is Binance truly financially strong?
If an exchange has all customer deposits reserved by the right amount of coins, then they can just say, "Sure, withdraw whatever you want. Come at us, test us, let's go." Simple as that.
— Lyn Alden (@LynAldenContact) December 15, 2022
There would be no reason for verbal gymnastics. https://t.co/0kewgh2U9b
Glassnode analytics estimate that Binance does have over 600k bitcoins (and near their highs in terms of their historical number), which is contrast to FTX which visibly drew down its bitcoin balance starting in the spring of 2022. pic.twitter.com/xRmb2ugCLk
— Lyn Alden (@LynAldenContact) December 15, 2022
But given how many different altcoins they handle, and leverage they provide to traders, and the overall complexities that they have, the fact that the CEO talks like that does beg the question.
— Lyn Alden (@LynAldenContact) December 15, 2022
Not trying to spread FUD. But be careful and consider self-custody.
What CZ is talking about there is Binance's corporate-level funds from FTX, rather than customer deposits.
— Lyn Alden (@LynAldenContact) December 15, 2022
If they *can't* handle a clawback comfortably, then it implies they had some loss somewhere else to offset their FTX investment gains, or are illiquid.
Unedited video:https://t.co/APkpzXevYu
— Lyn Alden (@LynAldenContact) December 15, 2022
CZ said yesterday that 99% of people who self-custody their crypto lose it (in contrast to keeping it on an exchange…)
— Lyn Alden (@LynAldenContact) December 15, 2022
While there is a self-custody learning curve, that's a pretty misleading statistic. https://t.co/TdykwAYknW
There are other exchange operators that say, "Don't leave your coins with us. Just keep here what you are actively trading."
— Lyn Alden (@LynAldenContact) December 15, 2022
That's a better framing.
Coinbase introduces a new ERC-20 self-service asset recovery tool
Introducing Coinbase’s new ERC-20 self-service asset recovery tool. A safe, simple, and secure way for our customers to recover almost 4,000 unsupported ERC-20 tokens. pic.twitter.com/YsszqPJ7EH
— Coinbase (@coinbase) December 15, 2022
This self-service tool makes asset recovery a simple step-by-step process while protecting the private keys for customer deposit addresses.
— Coinbase (@coinbase) December 15, 2022
For eligible assets, you can recover mistakenly sent funds and send them to your @coinbasewallet, or any self-custodial wallet that you own.
— Coinbase (@coinbase) December 15, 2022
All you'll need is the transaction ID and wallet address for any lost funds. This will be available for all users soon.
— Coinbase (@coinbase) December 15, 2022
See how to recover your funds ?https://t.co/PnXeq6IeWY
A closer look at a crypto accounting firm with a knack for finding trouble
NEW: ARTHUR ARMANINO.
— DIRTY BUBBLE MEDIA: WHO AUDITS THE AUDITOR? (@MikeBurgersburg) December 16, 2022
A closer look at a crypto accounting firm with a knack for finding trouble…
Summary ??https://t.co/P6lhYqvnRu
Armanino is (was) one of the leading cryptocurrency accounting firms, serving many large exchanges, lending firms, and other companies.
— DIRTY BUBBLE MEDIA: WHO AUDITS THE AUDITOR? (@MikeBurgersburg) December 16, 2022
Armanino was also the auditor for FTX US, a position which has gotten them into hot water lately… (1)
Armanino's main product for crypto firms are their "attestations" and "proof of reserves."
— DIRTY BUBBLE MEDIA: WHO AUDITS THE AUDITOR? (@MikeBurgersburg) December 16, 2022
The limitations of "proof of reserves" are well-established, so we took a closer look at their "attestation" process by examining their relationship with the crypto lender Nexo. (2)
It turns out that attestations are, in practical terms, worthless to anyone due to the incredibly small scope of these procedures.
— DIRTY BUBBLE MEDIA: WHO AUDITS THE AUDITOR? (@MikeBurgersburg) December 16, 2022
We demonstrate, using Nexo's "Real-Time Attestation" just how useless this product is. (3)
We note that we are not the first to point this out: multiple state regulators have come to identical conclusions when issuing cease-and-desist orders against Nexo: (4)https://t.co/atMdF9IqMY
— DIRTY BUBBLE MEDIA: WHO AUDITS THE AUDITOR? (@MikeBurgersburg) December 16, 2022
Nexo has recently announced they will be leaving the United States due to a "lack of regulatory clarity."
— DIRTY BUBBLE MEDIA: WHO AUDITS THE AUDITOR? (@MikeBurgersburg) December 16, 2022
And just yesterday, Forbes reported that Armanino is planning to shutter its cryptocurrency practice… (5)https://t.co/cfa6HYX7XT
We conclude by asking some questions about the ethics and culpability of an accounting firm that's willing to put its name on incomplete and misleading information that may put investors at risk.
— DIRTY BUBBLE MEDIA: WHO AUDITS THE AUDITOR? (@MikeBurgersburg) December 16, 2022
We don't have all of the answers, but we expect to get those answers soon… (6)
