Hedge fund manager Michael Burry, known for being one of the first investors to anticipate and capitalize on the housing market crash of 2007, says Binance’s recent scrutiny proving its reserves is without weight. With the implosion of the FTX profile, centralized crypto exchanges have struggled to provide proof of reserves reports, the purpose of which is to confirm that a platform’s reserves match its clients’ assets.
Big Short, an investor, notes to his 1.2 million Twitter followers that auditors are still picking up the nuances of the cryptocurrency asset class, which is a relatively new one. This is the issue. Our accountants were picking up new skills on the job when I started using a new type of credit default swaps in 2005. That is undesirable.
The same goes for FTX, Binance, etc. The audit is essentially meaningless.” Burry’s comments come after it was revealed that Binance’s auditor, Mazars, decided to suspend its services amid concerns that market participants were the content of his reports may not fully understand says Mazars, Mazars has suspended its activities related to providing ‘Proof of Reserves Reports’ to companies in the cryptocurrency sector due to concerns about the public’s understanding of these reports. The company also removed its website on crypto audits. The French auditing firm recently partnered with Binance and found that the cryptocurrency exchange has enough digital assets to support its users’ Bitcoin (BTC).