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.
There would be no reason for verbal gymnastics. https://t.co/0kewgh2U9b
— Lyn Alden (@LynAldenContact) December 15, 2022
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.
Not trying to spread FUD. But be careful and consider self-custody.
— Lyn Alden (@LynAldenContact) December 15, 2022
What CZ is talking about there is Binance's corporate-level funds from FTX, rather than customer deposits.
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.
— Lyn Alden (@LynAldenContact) December 15, 2022
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…)
While there is a self-custody learning curve, that's a pretty misleading statistic. https://t.co/TdykwAYknW
— Lyn Alden (@LynAldenContact) December 15, 2022
There are other exchange operators that say, "Don't leave your coins with us. Just keep here what you are actively trading."
That's a better framing.
— Lyn Alden (@LynAldenContact) December 15, 2022
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.
See how to recover your funds 👇https://t.co/PnXeq6IeWY
— Coinbase (@coinbase) December 15, 2022
A closer look at a crypto accounting firm with a knack for finding trouble
NEW: ARTHUR ARMANINO.
A closer look at a crypto accounting firm with a knack for finding trouble…
Summary 🧵👇https://t.co/P6lhYqvnRu
— DIRTY BUBBLE MEDIA: WHO AUDITS THE AUDITOR? (@MikeBurgersburg) December 16, 2022
Armanino is (was) one of the leading cryptocurrency accounting firms, serving many large exchanges, lending firms, and other companies.
Armanino was also the auditor for FTX US, a position which has gotten them into hot water lately… (1)
— DIRTY BUBBLE MEDIA: WHO AUDITS THE AUDITOR? (@MikeBurgersburg) December 16, 2022
Armanino's main product for crypto firms are their "attestations" and "proof of reserves."
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)
— DIRTY BUBBLE MEDIA: WHO AUDITS THE AUDITOR? (@MikeBurgersburg) December 16, 2022
It turns out that attestations are, in practical terms, worthless to anyone due to the incredibly small scope of these procedures.
We demonstrate, using Nexo's "Real-Time Attestation" just how useless this product is. (3)
— DIRTY BUBBLE MEDIA: WHO AUDITS THE AUDITOR? (@MikeBurgersburg) December 16, 2022
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."
And just yesterday, Forbes reported that Armanino is planning to shutter its cryptocurrency practice… (5)https://t.co/cfa6HYX7XT
— DIRTY BUBBLE MEDIA: WHO AUDITS THE AUDITOR? (@MikeBurgersburg) December 16, 2022
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.
We don't have all of the answers, but we expect to get those answers soon… (6)
— DIRTY BUBBLE MEDIA: WHO AUDITS THE AUDITOR? (@MikeBurgersburg) December 16, 2022
Source: https://www.cryptopolitan.com/best-twitter-threads-of-the-day-december-16/