Hey guys, it's Sasha Last Night Champion Xiao The mysterious CEO of Binance really up. And it's funny because this was extremely obvious coming from a mile away. But you know Crypto Bros Just can't help themselves. when they see an opportunity to commit gigantic fraud, they jump right in and take advantage of this opportunity.

And I know a bunch of you Binance Fanboys are going to turn up to drool about how amazing the CZ guy is. You know the mysterious guy in charge of a company with no actual physical address to manages billions of dollars of customers, money with no public record or their financials or any kind of audit. Just before you go into the comments section to spout some drivel to tell me I don't know anything about crypto or tell me to have fun staying poor. whatever other, try watching the video first because this is seriously dirty.

So yesterday the CZ guy goes and tweets audited proof of Reserves Transparency hashtag Binance and he links to a TechCrunch article with the title Binances Bitcoin Reserves are fully collateralized according to auditing firm Mazars and the slight problem with this headline is that it is completely false and totally full of and I am going to show you just how bad the situation with Binance is. Strap In! So the thing that CZ was referring to was this five-page report that Mazar's published yesterday. And the thing is, Massage is a large and generally well-respected Global Accounting and auditing company. So I have no idea why the they agreed to do this report well.

I Actually do have an idea I Think the main reason starts with the dollar symbol and ends with many zeros. But anyway, remember CZ Said that this is an audited proof of reserves. The big problem here is that it is neither audited nor proof of anything you can see right here on the first page. It says we have conducted the AUP engagement in accordance with the international standard blah blah blah blah blah.

An AUP engagement involves us performing the procedures that have been agreed with the binance and and Reporting the findings which are the factual results of the AUP perform. So this is not an orders, not any kind of an inspection. It is a smoke and mirrors pretend piece of paper. That means absolute Jack We make no representation regarding the appropriateness of the AEP We got paid to create a piece of paper.

We don't want to know why. Don't tell us we just took the money and did it this. AUP Engagement is not an assurance engagement. So yeah, the word not here implies that it could possibly maybe not actually be an audit.

Accordingly, we do not express an opinion or an assurance. Conclusion: Don't sue me bro. Had we performed additional procedures, other matters might have come to our attention that would have been reported the ultimate Get Out clause. There's probably a giant load of dog if you actually happen to look deeper into binance, but if and when that comes out, do not come to us.

We didn't see it. So now that we have established that this audited proof of reserves is in fact not audited or a proof, there is a helpful list here of what these guys actually did. and I Know it sounds kind of boring, a long, boring table. but seriously, you have to read it.

It's one of the dumbest things that I have seen Number One obtain from management the asset balance reports for the inscope assets as of the end of the day on the 22nd of November Update is important that list and quantify the nominal balances of all customers in scope assets held by Binance. So Mazars went to Binance and said give us a piece of paper that says how much of your customer money you've got. We will then look at this piece of paper and it says it's all there. Trust me bro and that is conclusive evidence.

Note: There is no verification on any checks happening here at all. It just says obtain from management what's in number Two Number Two is obtained from management. A full listing of all in-scope assets Public Keys addresses that constitutes a nominal balances included in the asset balance reports referred to in Procedure 1.. there is no checking any databases.

There is no making sure that all the customers assets are included here. Just go and ask Binance for what the list of the crypto wallets where customer money sits is and that shall be the truth. Independently, obtain the nominal balance of each public Keys addresses obtained as part of procedure 2 from their respective blockchains and number Four. Compare the total nominal balance of each blockchain's in scope asset obtained in procedure 3 to the asset balance reports obtained in procedure One.

So steps three and four check that the numbers they gave you on one piece of paper match up to the numbers they gave you on a different piece of paper. They in no way check whether the numbers on the pieces of paper have any bearing on reality have any relevance to what the actual customer funds the Binance does or does not hold are is just saying look the thing they printed on this paper lines up with the thing that's printed on this paper. Bang. It all adds up perfectly.

And step number five is basically to check the Binance actually owns the wallets that they have provided in this lit and that all sounds great until you actually look at what data Binance shared with Mazars because at the end of this report is a list of the addresses that were provided. There's three BMB addresses, four, BSC ones, nine Bitcoin ones, and four Ethereum ones. Okay, so let's go and look at this blog post the Binance published 12 days before the date on which this data was checked by Mazars. It says our commitment to transparency me as part of Binance's ongoing commitment to transparency and fostering trust in the ecosystem.

we're sharing details of a hot and cold wallet addresses. Bloody bloody blah. Scroll down. This is not a complete set of data which will be shared later in the full audited report.

I Guess this is the audited report we're looking at. Maybe, but wait. this list here has 17.6 billion dollars in Usdt. Let's go look at the report again.

Oh oh, it's not the way back to the blog post. There's another 21.7 billion of busd that massage? Check this one this stable. Did they forget they did forget? Oh an honest mistake. I Guess what's 21.7 billion dollars between friends? Oh, and there's another 601 million dollars of Usdc on here.

and that's not in the report either. So I guess they accidentally, completely by mistake, forgot to let these guys look at 40 billion dollars worth of on their balance sheet. It happens. We all make mistakes, right? But wait, it gets so much worse because a quick look on Coin Market Cap says that Binance has 59 billion dollars worth in total assets.

so the report conveniently forgets to even look at 40 billion out of that. But scroll down a little and there's a giant load of coins and tokens that are completely ignored too. These are mostly pump and dumb scams so they don't really carry any actual value anyway. But look, there's a cool 521 million dollars of Shiba Inu sitting here and it's not printed on the blog post and it's not in the Mazar's report.

There's another 260 million dollars of TUSD also missing from both. and if you scroll down more, it just starts adding more and more and more. 150 million of this thing and another 135 million of the same thing and another 135 million of the same thing in a different wallet. and 113 million of this other thing and 92 million or whatever the this is.

and 81 million of this, uh, how do you pronounce this Is it? You get the point. So Binance themselves don't bother saying anything about what the deal with these random tokens and coins is. And of course, they didn't ask Mazat to look at it either, because why would you? But wait, it actually gets worse from here. Because look in their own post on November 10th, Binance published four Bitcoin addresses and the letter from Mazars has nine different Bitcoin coin addresses.

One of the addresses on their blog post does not appear in their report and six of the ones in the report do not appear in the blog post. Massive transparency. Look at this one ending in Exb and the blog post says that this address has a 225 000 Bitcoin in there. but if you look at the wallet up, it somehow only has 68.2 000 Bitcoin Hmm.

Half has gone missing. Where did it go? So you can see that on November 18th they sent 127 000 Bitcoin out of that wallet to this other address ending in rp6 and that Rp6 address is in the list that Mazars had looked at. So Binance moved money from one of their wallets to another one and both of them are available to massage. What's the problem right? Well, a few days after November the 22nd, which was the cutoff point for this report, Binance actually went and moved all of the money out of that Rp6 wallet and sent it to this other wallet ending in three.

EQ So the buttoners went and move. They're called two billion dollars out of the wallet. So they publicly declared to a completely unknown random wallet a few days after proving that they of course have all the money and CZ said this is part of the proof of Reserve audit. Apparently Mazarus asked them to move two billion dollars to a random wallet to prove that they have control of the original wallet.

But wait, let's go back to the massage report because in item number five, it says one of the things they might ask is perform instructed movement of funds where management is instructed to move a specific amount from a public Key address on a specific time and obtain the transactional hash to verify the instructor transaction on the respective blockchain and or blah blah blah blah. So I Guess this is what CZ is referring to. But wait, There is a bit of text down here that says the combination of the above procedures corroborates a Binance has ownership over the private Keys associated with the public key addresses referred to in Procedure 2 and controls the funds held in the public key addresses at the end of the day on the 22nd of November 2022. So all the transactions and verification steps including assured balances were only checked up to the 22nd of November.

But this move of the two billion dollars happened six days later on the 28th of November and it went to a wallet that was not part of this review, so there was no check. That Binance even owned the wallet to which they moved 2 billion dollars. This is a bit like asking your parents to put some money into your bank account when you're applying for a mortgage, printing off a statement showing hey, you've got loads of money and then sending it immediately back. It's actually a lot worse than that.

According to CZ, Binance's Bitcoin reserves are fully collateralized. except you know the two billion dollars that are missing in a wallet. That was not part of the review that Massage did. And except for the 40 billion dollars, the binders just forgot to include in the list of addresses that they supplied to massage.

And except for the billions of dollars of coins that they also forgot to include. Oh, and they forgot to include. a bunch of their Eth wallets as well, including the biggest one. see this one ending in three E8 with 2 million Ethereum in it? Well, yeah, they accidentally forgot to include that wallet in the list they provided to Mazars.

They really should fire the intern that supplied these accounts. A few too many honest mistakes worth 2 or 40 or whatever billion dollars being made. Oh, and they forgot to include the two biggest the BNB accounts that hold almost all of their BNB as well. So you might naturally wonder how this attempt to be transparent came out to be a complete utter load of.

And could it be a sign that perhaps Binance is hiding something? I Guess someone could argue that the wallets that were not included are not customer funds, so maybe they did not need to be audited. But if that's true, that means that the vast majority of Binance's balance sheet is made up of not customer fun. so presumably money that belongs to Binance. And if that is the case, because Binance charge is relatively low fees I Presume they didn't collect the tens 40 billion, 50 billion, whatever it is from those fees.

And the only other possible explanation if this was true, which it isn't is that all of this is a product of a giant pump and dump where crap like BNB tokens were artificially pumped to the Moon sold to people to buy all this other stuff which then LED Binance effectively print tens of billions of dollars out of thin air? According to CZ Binance, don't owe any loans to anyone in his own words. And you know it's true because instead of publishing their accounts like any normal financial company or having an actual audit rather than this piss take he says you can ask around what the actual and just thinking out loud just just thinking about applying the gray matter. If you have no loans at all, you owe nothing to anyone. Why is doing an independent audit of zero harder than this? Unless of course you are completely talking out of your ass? The only thing that seems to be clear here is that Binance is murkier than a peat bog in the middle of a dark forest in the misty weather.

at 2AM CZ has an ego the size of an average Kardashian backside and seems to think that he is better than everyone. Anyone asking any questions or criticizing could just right off because they are a complete. The big question is will the authorities in the US and around the world actually get their heads out of their asses and finally do something? Because here we have a completely unregulated company with a service address in the British Virgin Islands managing billions of dollars of people's money with zero regulatory Financial Oversight. Absolutely no accountability whatsoever in the last 12 months we've already had Voyage we've had Celsius we've had Luna we've had FTX we've had blog fight How much of this is too much? When is somebody going to do something? This report from Azaz is not worth the paper it's written on.

Binance is laughing in the face of every one of their customers and sticking a giant two-finger salute at The Regulators The massive red flags are so obvious piling right up and I am sure if Binance goes down at some point in the future, Maybe if a load of the money goes missing mysteriously when there is a run-on Binance, Perhaps if Bitcoin has another sharp drop in value ever, everybody is going to be massively surprised again. I Guess if you play stupid games, you win stupid prizes. But this is getting ridiculous.