Financial analysts claim that the latest move by Binance to promote openness is not entirely apparent.
the Wall Street Journal (WSJ) survey, which was based on interviews with financial and accounting professionals.
The largest cryptocurrency exchange in the world, Binance, has just made an effort to reassure its consumers in the wake of the failure of FTX.
In an interview with the Wall Street Journal, Binance’s chief strategy officer, Patrick Hillmann, stated, “It’s crucial for us to demonstrate to users that the coffers are not barren, as at FTX.”
This week, the business disclosed evidence from the auditing firm Mazars demonstrating that Binance has sufficient bitcoin in reserve to satisfy its liabilities. The company has lately published details regarding its cryptocurrency wallet addresses.
According to Douglas Carmichael, a professor of accounting at Baruch College in New York and a former top auditor of the U.S. Public Company Accounting Oversight Board, it shouldn’t be sufficient for investors.
Carmichael added, “I can’t believe it addresses all the concerns an investor would have over the adequacy of collateralization. That’s the major point it appears to be making.
Competitors and colleagues of FTX have made an effort to separate themselves from the defunct business and the supervision mistakes that caused it to fail.
