The Binance Disaster JUST got Worse.

things have gotten worse for binance

today and it doesn't look good hey

everyone meet Kevin here yesterday I

covered a binance interview a CNBC

binance CEO interview where the CEO

let's just say had some embarrassing

moments in addition to refusing and

dodging the question about whether or

not they have ever used customer funds

to make investments like potentially a

five million dollar investment into

Twitter where did they get that money

from and refusing to acknowledge that if

they have so much money they say they

have 62 billion dollars of assets why

then are they unable to commit that if

they needed to make a 2.1 billion dollar

payment they had sufficient liquidity to

do so now of course anytime a negative

piece comes out on binance there's an

army of binance bots that I think are

just scripts that come out to suggest

that either the interviewer or the

person covering the story has bias or

whatever even though when you just look

at the interview yourself it's like hmm

why is the CEO being so dodgy it should

be simple to say no we don't use

customer funds but they don't do that

it's also really odd when we hear the

CEO say oh we don't owe anybody money we

don't owe any company money we don't

have loans and then in the same

interview the CEO says yeah we're

working on doing an accounting of our

liabilities this is quite odd but it's

no surprise that after yesterday's

disastrous interview what happened today

well I'm going to reveal that right

after giving you a bit of context so

there's this French accounting firm

called mazars they're an accounting firm

that actually does the accounting for

companies like crypto.com kucoin and

binance and when I say accounting I want

to be clear they do what's known as a

proof of reserves disclosure accounting

this is basically something that just

shows how many assets they have it's not

really a full audit and even though all

of these companies are like oh don't

worry one day we'll do a full audit

nobody in this tough environment wants

to do a full audit right now probably

because they're worried about being

really exposed we also really question

how much revenue these companies are

able to bring in right now since crypto

volumes have substantially collapsed and

so this creates a concern that if there

are revenues that crypto companies are

collapsing and potentially they are

somehow through loopholes or otherwise

leveraged because like the CEO says oh

they don't owe somebody money but they

have leverage okay so so you do have

liabilities but you don't owe somebody

money maybe maybe you're pledging

customer assets and so technically you

don't have a loan but you're borrowing

money by pledging customer assets so

it's actually your customers assets who

have the liability against them and

you're using that to go make other

Investments whether it's in crypto

venture capital or speculative

Investments to create a yield for

yourself we don't know and the scary

thing about the crypto industry is just

that it's one that says it's transparent

but then when companies or people

request audits the crypto exchanges say

we just do proof of reserves we'll just

tell you how many assets we have we

won't tell you how many liabilities we

have take a listen now that you know a

little bit about mazars the French firm

that does these sort of proof of

reserves accounting or disclosure

reports listen to the reference from

CNBC yesterday about mazars and then I'm

going to give you the update of what

happened today but even the audit that

you're not I shouldn't call it an audit

even the disclosure that you're doing

with mazars is not I mean you're setting

the rules for this it's not a real audit

you're telling them what you'll share

and you're kind of setting up they

wouldn't call it an audit so what

happened with mazars today well today

mazars quit

literally the one company CNBC

references as the one company providing

any kind of disclosure into binance

which we know is also a company that

works for crypto.com and kucoin has

decided they're quitting this French

firm is quitting because of indications

that markets haven't been reassured by

the proof of reserves reports they have

published thus far and therefore they're

quitting the entire crypto industry it

just makes you scratch your head and

wonder are things that bad in the crypto

industry that the one company doing

proof of reserves reporting has now quit

of course many folks in the comments

section say ah CZ and the CEO of binance

is an OG oh you know he doesn't have to

answer questions oh the questions that

are being asked are binance oh somebody

uh or or biased to not buying a finance

bias whatever uh or or buys oh you know

somebody reporting on the issue is is uh

not fair to say anything bad about

binance because they're perfect you know

like the amount of those sorts of

comments are are at bot levels it's

really weird and when I look at my

YouTube analytics I see at a certain

time stamp these interesting spikes in

externally sourced views and their views

that on average have about a 20 to 30

percent shorter view duration so I

wonder if my videos on binance or or

certain videos catch on and then

somebody like turns on the Bots and all

of a sudden we get these external

viewerships that aren't actually

watching the video as much as normal

viewers are potentially humans and

they're just leaving spam or hate to try

to manipulate the audience's view the

public perception that oh the creators

are wrong the media is wrong the

interviewers are biased

when the reality is maybe we're on to

something I'm a big believer in when

there's smoke there's fire and it's not

to say that binance for sure is going

down but let me just put it this way

there's a famous saying in crypto that

we've all become very used to where and

it's very simple it's not your keys not

your crypto and I think the best

recommendation in the crypto world right

now is get off exchanges we've been

saying this since before FTX collapsed

been saying this since before Voyager

collapsed the amount of warnings on the

channel as have always been get off

exchanges use the exchanges to buy but

get off soon and stay away from stable

coins because that means you're stuck on

exchanges and sometimes you're locked up

like crypto.com locks you up for

potentially three month increments in

stable coins and now while that's nice

to be able to farm that sort of yield it

might make a lot more sense to farm

yield on Treasury sitting at three and a

half to four percent right now then it

might you could you know

farmyield.treasurydirect.gov and then of

course you're going to get a bunch of

Bot comments they're like yeah

government Bunch chill it's like

let's see risk-free asset

fully accounted for versus

crypto exchange that just lost an

accounting firm

and they're leaving the entire crypto

industry when their only job was to tell

people what the assets were which is

also misleading in the first place proof

of reserves nonsense we got to know what

liabilities are we gotta know what the

Leverage is you can't you just can't

trust it otherwise and so it's really

really scary to see uh the the amount of

backlash that is sort of being

programmed in social media commentary in

comment sections but I strongly believe

the vast majority of those uh uh you

know saying oh you know this is just fud

or just Bots manipulating markets so be

very very careful and uh look I wish you

the best out there not your keys not

your crypto but it's definitely a scary

moment when you see mazarus the one Farm

doing this quitting kucoin binance

and crypto.com good luck out there