Hedge Fund Manager Michael Burry, well known for predicting the 2008 financial crisis, says that the problem with auditing cryptocurrency exchanges, such as Binance and FTX, is the same as when he started using a new type of credit-based swap. “Our audience was learning about the project,” he explained, adding that “it’s not a good thing.”
Michael Burry and Crypto Firm Audits
A well-known investor and founder of the firm Scion Asset Management, Michael Burry, said on Friday that proof-of-reserves (POR) audits of cryptocurrency exchanges, including Binance and the failed exchange FTX, do not make sense.
Burry is best known for being the first investor to see and profit from the US subprime crisis that occurred between 2007 and 2010. He is featured in ‘The Big Short’, a book written by Michael Lewis about the mortgage crisis, which was made into a movie starring Christian Bale.
Commenting on the fact that the accounting firm Mazars Group stopped at the evidence of keeping an audit for crypto companies, Burry tweeted:
This is a problem. In 2005, when I started using the new CDS model, our audience was learning on the job.
- It’s not a good thing. The same goes for FTX, Binance, etc. The main character makes no sense.
- Burry’s tweet refers to a Bloomberg report explaining that the French financial institution has suspended operations in the crypto industry due to concerns about media scrutiny and indications that the market is not reassuring.
from the evidence of the Reserve reports that it has published now, including for Binance. , Crypto.com and Kucoin. The news follows criticism from the CEO of crypto exchange Kraken, Jesse Powell, who recently criticized Binance’s Mazars-audited POR. This week, more than $3 billion was withdrawn from Binance.
