Binance and FTX Tweet from The Legend Predicting the 2008 Crisis!

Binance and FTX Tweet from The Legend Predicting the 2008 Crisis!
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Binance and FTX Tweet from The Legend Predicting the 2008 Crisis!

On Friday, December 16, controlling firm Mazars Group, which submitted its proof-of-reserve report for Binance, suspended all ties to crypto companies. Mazars Group said they are shutting down activity “for entities in the cryptocurrency branch due to concerns over the way these reports are understood by the public.” Foreseeing the 2008 crisis and inspiring a movie called “The Big Short”, Burry made statements about the Binance report and FTX. Here are the details…

Michael Burry: Controls are meaningless

The controlling and accounting company Mazars has suspended the checking service for Binance and other cryptocurrency companies. Because recently, a few doubts about the incomprehensibility of the report have emerged. Commenting on this, Big Short investor Michael Burry said the controls were essentially pointless. “That’s the problem,” Burry said. When he started using a new medical default swap in 2005, he said auditors learned on the job. “This is not a good thing,” he said. He used the words “The same goes for FTX, Binance”. He conveyed that control is essentially meaningless.

Binance CEO Changpeng Zhao recently stated that controlling firms are not willing to work with crypto businesses. He also added that several control firms do not know how to audit crypto exchanges, user accounts and different blockchains. Zhao used the following words:

There are several control firms that audit FTX and they have been criticized for giving a stamp of approval and I don’t know how they do the controls. But the controls don’t reveal every problem.

Binance and FTX Tweet from The Legend Predicting the 2008 Crisis!

Is Binance too big to fail?

With the collapse of crypto exchange FTX, Binance is now the only major global exchange of choice for trading crypto assets. The exchange is currently facing turmoil with US regulators filing a criminal complaint against Binance executives. This, combined with other news reports, such as improper inspection reports and large withdrawals, worried investors. Mark Lurie, CEO and co-founder of Shipyard Software, which builds decentralized exchanges, said:

I don’t think Binance is trying to cause trouble, but this scheme is now a risk for all of us. Whenever you have a player controlling volume to a significant extent, there are many systematic risks.

Binance and FTX Tweet from The Legend Predicting the 2008 Crisis!

Tennessee Senator Bill Hagerty also stated that a collapse of Binance like FTX would be “disastrous for the cryptocurrency industry.” He even said that “it would be disastrous for all consumers using the industry.” However, CZ reiterated several times that the stock market is financially strong. He also said that after the last withdrawals, the deposits started to come back.

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