Another crypto drama might be looming on the horizon, even bigger than the continuing
FTX-related
one. Customers are moving their money from Binance, concerned about the safety of their assets amid the fuss caused by the recent audit gone wrong.
The world’s biggest crypto exchange platform failed to prove the effectiveness of its internal financial controls, triggering red flags related to collateralization issues, discrepancies between the total Bitcoin liabilities, not achieving 1:1 ratio of reserves to user assets, and lack of clear information about the platform’s corporate structure and the identity of its parent company.
Over $3 billion withdrawn in 24 hours
On top of that, it turned out that the verification performed by the auditing firm Mazars’ South African affiliate, wasn’t even an audit but an agreed-upon procedures engagement, whereby a contracted party is engaged ”
to carry out procedures
to which the practitioner and the engaging party have agreed and to communicate the procedures performed and the related findings.”
coinpaper.com/753/over-3-billion-in-24-hours-binance-sees-massive-withdrawals