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Binance, the world's biggest crypto exchange, is now under intense scrutiny after the FTX debacle. Here are 5 things you need to know.
finance yahoo ^ | 12/17/2022 | Zahra Tayeb

Posted on 12/19/2022 11:40:50 AM PST by catnipman

even though the Mazars report ... suggested Binance's situation was solid, it also showed bitcoin liabilities were $245 million bigger than assets, the WSJ reported. Nearly half of the company's $75 billion reserves are in its own stablecoin BUSD and its native token binance coin (BNB) ...

On Friday, the accounting firm suspended its proof-of-reserves work with Binance and other crypto clients "due to concerns regarding the way these reports are understood by the public,

Investors are worried that cracks are starting to appear at Binance after the shocking collapse of FTX.

The crypto exchange giant faces questions about its reserves, and it is under investigation by the DOJ.

As the crypto market lose confidence in the exchange, its CEO warned staff of "bumpy" times ahead.

Customers drained billions of dollars from Binance's crypto platform last week

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Politics/Elections
KEYWORDS: binance; crypto; ftx
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The situation with Binance is EXACTLY the same as the situation that brought down FTX, namely their balance sheet is largely made up of their self-invented worthless proprietary, homegrown virtual vaporware monopoly "money" ...

Since Binance is the biggest and last exchange standing, it's collapse would (thankfully) signal the end of the biggest Ponzi scheme in history ...

Anyone who has given binance the custody of their virtual "assets" and doesn't withdraw them immediately is a fool ...

1 posted on 12/19/2022 11:40:50 AM PST by catnipman
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To: catnipman
would you buy a used lemonade stand from this guy (the one of the right)?


2 posted on 12/19/2022 11:44:08 AM PST by catnipman (In a post-covid world, ALL "science" is now political science: stolen elections have consequences)
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Is the bloom off the tulip?


3 posted on 12/19/2022 12:01:31 PM PST by dsrtsage ( Complexity is just simple lacking imagination)
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To: catnipman

Obviously in the hair futures market, one is going long, the other short.


4 posted on 12/19/2022 12:18:20 PM PST by Flick Lives (Cui bono)
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To: catnipman
Mazars issued a "reserves" "report" on Zhao that said, "Ha ha, tulips are out of season.", ran down to their legit bank to cash their payment, and immediately hit the freaking ejector seat.


5 posted on 12/19/2022 12:18:40 PM PST by StAnDeliver (Tanned, rested, and ready.)
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To: catnipman

Gee what could go wrong, a dude named CZ controls the entire company, there’s no board, there’s no audits, there’s no oversight, there’s no daylighted balance sheet, nothing! probably your money is not there either.


6 posted on 12/19/2022 12:25:41 PM PST by databoss
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To: catnipman

“Anyone who has given binance the custody of their virtual “assets” and doesn’t withdraw them immediately is a fool ...”
***************************************

I think its already too late for that, Binance has already suspended withdrawals. They will be the next exchange to go belly up in the coming days.


7 posted on 12/19/2022 12:26:51 PM PST by jimwatx
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Zhao is gonna go down for most of the same charges attached to SBF, merely for the distraction: "LOOK! A Chinese SQUIRREL!" to take attention away from SBFs 70M he illegally funneled to Democrats the 18 months preceding Election Day 2022. Not counting similar amounts he funded his godforesaken fugly mother's marxist PAC with.

God damn if the 118th handled this correctly they could have unlimited punch down. But without Rush as the speartip, it's just as likely to go away.

8 posted on 12/19/2022 12:40:37 PM PST by StAnDeliver (Tanned, rested, and ready.)
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To: jimwatx

Binance is a huge outfit, much bigger liabilities than FTX.

This is going to rock financial markets all over the world and could easily cause cascading failures in other financial institutions—fasten your seat belts everybody.


9 posted on 12/19/2022 12:47:43 PM PST by cgbg (Claiming that laws and regs that limit “hate speech” stop freedom of speech is “hate speech”.)
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To: jimwatx

Binance is a huge outfit, much bigger liabilities than FTX.

This is going to rock financial markets all over the world and could easily cause cascading failures in other financial institutions—fasten your seat belts everybody.


10 posted on 12/19/2022 12:47:44 PM PST by cgbg (Claiming that laws and regs that limit “hate speech” stop freedom of speech is “hate speech”.)
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To: catnipman
Five things I need to know???

Hardly.

Only one thing I need to know: It's a "crypto exchange".

11 posted on 12/19/2022 12:49:04 PM PST by NorthMountain (... the right of the peopIe to keep and bear arms shall not be infringed)
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To: NorthMountain

Are any of these vapor assets being used as collateral for stock investments. If so, there is going to be some domino affects.


12 posted on 12/19/2022 12:52:09 PM PST by Mouton (The enemy of the people is the media )
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To: NorthMountain

Zero Hedge has some great articles on Binance here:

https://www.zerohedge.com/search-content?qTitle=binance

This baby is going down...hard.....


13 posted on 12/19/2022 12:52:42 PM PST by cgbg (Claiming that laws and regs that limit “hate speech” stop freedom of speech is “hate speech”.)
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To: Mouton

The problem is that Binance liabilities are fungible—that means that they might owe someone a dollar who borrowed that dollar to buy stock.

That is why financial institution collapses are like viruses in the financial system.

There are no real firewalls preventing them from having an indirect impact on any type of asset class.

The “experts” hope nobody notices.


14 posted on 12/19/2022 12:55:40 PM PST by cgbg (Claiming that laws and regs that limit “hate speech” stop freedom of speech is “hate speech”.)
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To: dsrtsage

Which accounting firm????


15 posted on 12/19/2022 1:22:45 PM PST by ridesthemiles
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To: catnipman
its own stablecoin BUSD and its native token binance coin (BNB),

I thought the plethora of cryptocurrency was confusing, now there are different types of coins under the same issuing organization. I have no idea what the difference is between BUSD and BMB.

16 posted on 12/19/2022 1:36:39 PM PST by C19fan
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To: catnipman

You have to be an idiot to ever cash out your crypto to leave money “in an exchange.”

Doing so leaves you perfectly at their mercy.

And they have none.


17 posted on 12/19/2022 2:08:38 PM PST by ConservativeMind (Trump: Befuddling Democrats, Republicans, and the Media for the benefit of the US and all mankind.)
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To: C19fan

It is a classic shell game street con—and there is nothing under either shell!


18 posted on 12/19/2022 2:14:29 PM PST by cgbg (Claiming that laws and regs that limit “hate speech” stop freedom of speech is “hate speech”.)
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To: catnipman
No, it's not the same and these reports have been overblown. As it happens I was pulling out over $30K from crypto via Binance.US (their "toddler exchange" for US citizens) last week right during the supposed outflow.

I should mention I arbitrage stablecoins on other exchanges so I'm sensitive to inflows/outflows, volatility and stuff exactly like this. And what I saw on Binance during this event was like a barely-perceptible tremor compared to a major earthquake (of which crypto has had plenty historically). And that's too bad, because I make the most of it when volatility hits and the stablecoin market charts start looking like a seismograph.

I wound up selling my tether for $1.001 on Binance - it's not exactly a sign of market stress when you can get more than par value for their digital token than the actual thing it symbolizes is worth.

19 posted on 12/19/2022 2:52:42 PM PST by EnderWiggin1970
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To: databoss

“Gee what could go wrong, a dude named CZ controls the entire company, there’s no board, there’s no audits, there’s no oversight, there’s no daylighted balance sheet, nothing! probably your money is not there either.”

has NO “proper headquarters” but “is looking for one” (according to “CZ”)

AND banned in the U.S., China, Japan, UK, Italy, Thailand, Netherlands ...


20 posted on 12/19/2022 2:54:45 PM PST by catnipman (In a post-covid world, ALL "science" is now political science: stolen elections have consequences)
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