Fun

Big Short Investor Michael Burry Says Audits of Crypto Exchanges Like Binance and FTX Are ‘Meaningless’

News Feed - 2022-12-17 11:12:59

Big Short Investor Michael Burry Says Audits of Crypto Exchanges Like Binance and FTX Are "Meaningless"


Hedge fund manager Michael Burry, famed for forecasting the 2008 financial crisis, says the problem with auditing cryptocurrency exchanges, like Binance and FTX, is the same as when he started using a new kind of credit default swap. “Our auditors were learning on the job,” he described, adding that it’s “not a good thing.” Michael Burry on Audits of Crypto Firms


Famous investor and founder of investment firm Scion Asset Management, Michael Burry, said Friday that proof-of-reserves (POR) audits of cryptocurrency exchanges, including Binance and the collapsed exchange FTX, are meaningless.


Burry is best known for being the first investor to foresee and profit from the U.S. subprime mortgage crisis that occurred between 2007 and 2010. He is profiled in “The Big Short,” a book by Michael Lewis about the mortgage crisis, which was made into a movie starring Christian Bale.


Commenting on accounting firm Mazars Group halting proof-of-reserves audits for crypto companies, Burry tweeted: This is the problem. In 2005 when I started using a new kind of credit default swap, our auditors were learning on the job. That’s not a good thing. Same goes for FTX, Binance, etc. The audit is essentially meaningless.


Burry’s tweet references an article by Bloomberg explaining that the French accounting firm suspended work on crypto firms because of concerns over intense media scrutiny and indications that markets have not been reassured by the proof-of-reserves reports it has published so far, including for Binance, Crypto.com, and Kucoin.


The news followed criticism from the CEO of rival crypto exchange Kraken, Jesse Powell, who recently denounced Binance’s POR audited by Mazars. This week, more than $3 billion in funds were withdrawn from Binance.


Addressing concerns over his exchange’s POR in an interview with CNBC Thursday, Binance CEO Changpeng Zhao (CZ) also claimed most accounting firms do not know how to audit cryptocurrency exchanges.


The executive was asked why Binance does not use one of the Big Four accounting firms — Deloitte, EY, KPMG, and Pricewaterhousecoopers (PwC) — to audit its books, and whether the crypto firm was unable to provide files and data for auditors to be comfortable giving their stamp of approval. The Binance boss simply replied: Many of them don’t even know how to audit crypto exchanges. Tags in this story Big Short Michael Burry, michael burry, Michael Burry Binance, Michael Burry crypto exchange audits, Michael Burry cryptocurrency exchange audits, Michael Burry CZ, Michael Burry FTX, Michael Burry FTX audits, Michael Burry POR audits, Michael Burry proof-of-reserves audits


What do you think about the comments by Michael Burry about audits of cryptocurrency exchanges? Let us know in the comments section below. Kevin Helms


A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. UNHCR Launches Blockchain Payment Solution to Support Ukrainians Displaced by War FEATURED | 1 hour ago Kevin O"Leary Tells US Lawmakers FTX Failed Because Binance Intentionally Killed It FEATURED | 2 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleHal Finney’s Wife Fran Activates Her Husband’s Twitter Account to Protect It From ‘Being Purged’ by Elon Musk Next articleBrazil Could Launch Its Defi-Integrated Digital Real in 2024 Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItFollowing a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days


Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on April 5 jumping to $43 per transfer. 12 days later, average ether fees are close to dropping below $10 per transaction and median-sized ... read more.UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin

News Feed

US Central Bank Hikes Benchmark Rate by 75 bps, Fed’s Largest Increase Since 1994
US Central Bank Hikes Benchmark Rate by 75 bps, Fed"s Largest Increase Since 1994 The U.S. Federal Reserve raised the federal funds rate by 75 basis points (bps) on Wednesday, and
Huobi Becomes Latest Crypto Exchange to Disclose Proof-of-Reserves
Huobi Becomes Latest Crypto Exchange to Disclose Proof-of-Reserves Huobi, the Seychelles-based crypto exchange, recently became the latest digital asset exchange platform to reveal
Toki Universe Introduces the World’s First Fractionalized NFT PFP Project With an Antique Twist
Toki Universe Introduces the World’s First Fractionalized NFT PFP Project With an Antique Twist sponsored Toki Universe Family PortraitToki
EigenLayer TVL hits $12.9B, climbs 11% in one week — IntoTheBlock
Josh O"Sullivan13 hours agoEigenLayer TVL hits $12.9B, climbs 11% in one week — IntoTheBlockEigenLayer leads the restaking sector with a $12.9 billion TVL, driven by AVS rewards and growing interest in Ethereum-based r
Yashu Gola7 hours agoWhy is XRP price down today?XRP price is down today, like other top crypto assets, as traders anticipate a Federal Reserve rate hike this week.9888 Total views23 Total sharesListen to article 0:00Alt
Web3 developer Community Labs pledges $35M for Arweave ecosystem accelerator
Zhiyuan Sun7 hours agoWeb3 developer Community Labs pledges $35M for Arweave ecosystem acceleratorQualified projects will be able to pitch their products to prominent VCs after the 10-week accelerator.853 Total views3 To
Inside LBank’s Exquisite Afterparty at DCENTRAL Miami
Inside LBank’s Exquisite Afterparty at DCENTRAL Miami press release PRESS RELEASE. INTERNET CITY, DUBAI, Dec 2nd, 2022 – LBank, a global crypto exchange, hosted an ‘LBank &
Amaka Nwaokocha14 hours agoFTX exploiter moved over $17M in ETH in the last 24 hoursA significant portion of the 7,749 ETH, worth roughly $13 million, was directed toward the THORChain router and Railgun contract.6997 To
Ripple invokes SEC v. Terraform case, argues for smaller civil penalty
Turner Wright7 hours agoRipple invokes SEC v. Terraform case, argues for smaller civil penaltyThe blockchain firm’s case with the SEC has been ongoing since December 2020, when the regulator alleged Ripple used XRP as
Zhiyuan Sun5 hours agoTroubled crypto exchange JPEX applies for deregistration in AustraliaThe unlicensed exchange allegedly solicited more than $128 million from users before being reprimanded by the Hong Kong Securitie
Coinbase Receives In-Principle Approval to Provide Crypto Services in Singapore
Coinbase Receives In-Principle Approval to Provide Crypto Services in Singapore Singapore’s central bank, the Monetary Authority of Singapore (MAS), has given Coinbase “
German gov’t transfers another $52M in Bitcoin, threatening more BTC selling pressure
Zoltan Vardai11 hours agoGerman gov’t transfers another $52M in Bitcoin, threatening more BTC selling pressureRepeated Bitcoin transfers to centralized exchanges suggest the government plans to sell its $2.75 billion i