Hey guys, it's Ashley Binance is in deep deep trouble. This is bad. and if Binance collapses, Crypto is going to lose its biggest crypto exchange. But it will lose a lot more than that because the Public's trust and patience with the degenerate gambling and scams that seem to make up 99 of the crypto industry is already at breaking point.

And it looks like Binance is just as dirty if not more dirty than FDX Block fire and all the other depraved low lives that run illegal exchanges, selling financially desperate people magic beans in the form of worthless crypto tokens and jpegs of monkeys wearing funny hats. Because this morning I went to look again at the report that Mazarus produced for Binance. You know that report that CZ the CEO of Binance said was the audited proof of reserves? Yeah, well, this is what this report looked like last week and up to yesterday. But today, Mazarus made a subtle change.

and now the report looks like this: So yeah, in the video I made last week, I actually asked the question of how the a respected Global auditing company you like Mazar's wet and basically openly facilitated fraud because this report was an AUP Absolutely not an audit of any kind. But they produced it knowing full well that Binance was going to misrepresent this report to the public as a formal audit. They knew it because Caesar had literally said so publicly before they did the report. Anonymous realized that they really up and they went and deleted the report.

This is unprecedented I Have no idea whether they paid Binance the money back or if they pointed CZ to a bit in their contract. That probably said Binance is not allowed to commit fraud by misrepresenting what this report is. but it is gone. and yesterday CZ went on CNBC and oh boy, he made it a lot worse.

You are going to want to see it if you are unsure about Binance and the CZ guy before. This is so eye-opening I am going to show you all the best bits and walk you through it because in this interview Caesar continues making false statements, lying and making up. It's really bad. It keeps pedaling the same line that all customer assets are held one to one in their reserves.

People can draw withdraw 100 of the assets they have on Binance. We will not have an issue at any given day. So uh, 100 of the users withdraw 100 assets. We'd be fine.

and he also keeps saying that Binance has no debt. Very simply, Binance does not owe people money. Venice does not have loans from other companies from other funds. just we just don't have it.

The problem is that this is exactly what everybody else said as well. and as a result of stealing and gambling billions of dollars of their customers money FTX went insolvent because they happen to actually have nine billion dollars worth of liabilities. Now Binance is claiming that they are all good, but they won't let anyone check whether that's true or not. Crypto investors are now queuing up in their draws to withdraw money.

Tether is seeing billions of dollars withdrawn. They have their own major question marks about their transparent currency. Ethereum is seeing a run on the bank, as well as people are withdrawing funds. And in the Panic Crypto.com another major crypto exchange, Accidentally, you couldn't make this almost 400 million dollars to the wrong address.

something they only admitted and corrected after their users saw it and called them out on. Twitter Of course you would already know all of this if you also read the Daily Upside who are the sponsors of today's video. The Daily Upside is a completely free newsletter that sends you one email every morning with a quick digest of the most important Finance news. These are very short pieces really well written by Finance professionals that combine facts and data with a subtle dose of humor, which is precisely why I Personally am a fan.

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So the big problem is that Caesar says that Binance holds all customer assets one to one and has no debt. and uh, we also do not have loans to other people um, that we depend on for our next payroll. Did you notice how he said Binance has no loans then paused, then qualified by saying that we depend on for the next payroll. How are you good? You cut this up and at the same time Cesar went and bought a worthless AUP from Mazarus for whatever reason that AAP has now been deleted by Mazats.

The obvious question here being: did missiles uncover something afterwards. Did Mazar see a huge transaction coming out of the wallets that they just audited after the cutoff date and smell a rat? Or did Mazars find out something about Binance's balance sheet that it is not quite a squeaky clean as Binance would like to make up what was it because if CZ wants to pretend that he is is all transparent, it is really easy to prove. Go and get an actual proper audit. Go and hire real auditor to do it.

Go And publish your P L You're a finance institution. Go and publish your balance sheet, get registered in an actual country that has actual regulation, and have professional Auditors confirmed that you are not completely full of because you know what? If you go and do that, you will immediately get a giant boatload of trust from your customers and everybody else. And what good reason in the current environment in the current situation is there to not do it out of choice? Why would you not do? An auditor would reveal that's easy if you could get a big four auditor to say that if you're saying that some of them don't want to work with you, that raises questions too. They don't want to work with you because you don't have the files and the data that would make them feel comfortable signing off and and giving that stamp of approval.

Actually, many of them don't even know how to audit crypto exchanges. Um, they don't. they don't. They don't really when they are.

So when they audit, they are. They're very used to auditing or firm. Um, they don't know how to order, uh, user assets, different blockchains. Etc According to see that all the same firms don't want to work with crypto companies and they don't know what they are doing.

they're all dumb. This is very typical as a problem for Caesar Who thinks that everyone else is an idiot and he is the only smart guy in the room. There was one other dumbass who thought the same exact thing and that douchebag is now in handcuffs in the Bahamas waiting for his extradition to the US where he's going to rot in jail. And you know what? Coinbase is a publicly traded company in the United States that deals in crypto that has a crypto exchange.

They have an actual physical address in the United States They are under the jurisdiction and the auditing of the IRS. They publish their financial data every quarter and they have deloitted a big four accounting firm doing their audits. Wow. So CNBC asks Sees that This question? Coinbase has a big four auditor.

Um I Actually I I Don't look at Coinbase. We don't really look at I Think so though I don't know, they understand it well enough is the auditor Coinbase experience much smaller Coinbase, much smaller jurisdiction coverage Uh Global coverage number of coins, number of products I'm just. you know it's still a bit different. What kind of an answer is that? they are not as big as us? Therefore, of course nobody could do our audit even though they can perfectly well do this.

And the CNBC guys also asked him if he had recently spoken to Auditors to actually ask them if they'll do an audit. My understanding is that you came out publicly and said that Deloitte Ernst Young, KPMG and Pricewaterhousecoopers wouldn't participate in these audits. My question to you is, have you have you spoken with them since um, and is there under Is there a circumstance under which they they would do it? Is it? Is it about the disclosure that you're providing to them? Is it about their own experience? Uh, no. I Have not personally spoken to them and I also did not name them.

Um, but you know we are very happy for them to work with anyone that wants to audit, uh, properly. how to order the crypto business? Um, Oh. My. God.

So this says that no auditor can possibly do an audit on Binance and the reason he knows this is because he hasn't actually asked any of them because he hasn't spoken to any of them. Come on, how bad does this smell? But you know what's worse. A few minutes earlier in this interview he said this and we are working with auditing firms. Interestingly, many other firms are kind of scared to work with crypto businesses.

They don't want it. You know, there are a few audit firms that audited FTX and they got burned because they give the staff approval and I don't know how they did the audience, but others don't reveal every problem. So apparently Binance are working with an auditing firm or are they not working with the notesing firm Like he says later because nobody will work with them or are they not working with an auditing firm because Auditors don't know what they're doing. Make up a story and stick to it.

Here is a top tip to seize it. and every other crypto bro who thinks that they are smarter than everybody else a good auditor can audit. Whatever the it is that you give them your crypto exchange where people buy and sell made up tokens is not some kind of sophisticated, super complex rocket science. These Auditors ordered way way way more sophisticated and complex companies that deal in just as many jurisdictions as Binance.

Except those companies are actually regulated and they don't do dodgy and they have proper Audits and the coming out of Caesar's mouth just keeps on coming. If and tell me if I'm wrong about this. you allowed customers to deposit and hold Usdc instead of what it looked like was that you Auto converted them into your own exchange dollar Am I wrong. Uh, there's a minor Corrections Um, so number one is we do the auto conversion into Busd which is not issued by us which is not the exchange dollar.

Um, it's actually issued by a New York Dyf uh licensed entity. Um, Paxos. So apparently Busd has absolutely nothing to do with Binance, a completely separate entity, separate company. Here, on Binance's own website, it says Busd is a one-to-one USD Backstable Coin approved by the New York State Department of Financial Services and issued in partnership with Pacsource.

So according to Binance's own website, Busd is issued by Binance in partnership with Paxos. Basically, Binance is using the license that Paxos has in New York to do it under their name. and on the Pacsource website it says Binance USD is Binance's stablecoin and issued in partnership with Paxos Trust Company. So the guys that sees it says have nothing to do with Binance who issue a currency that has nothing to do with Binance.

They say that it is in fact Binance that is the company that issues Busd in partnership with them. The clue is in the name B USD Where B stands for Binance look it says Binance USD But after the storm that hit these Paxos guys went and released a statement. and that statement suddenly says the exact opposite to their own website. It says Paxos is the sole issuer of Busd the US dollar backed stable coin regulated by the New York State Department of Financial Services on Ethereum.

I Just can't even me. They realize that the regulator is going to come and smack them really hard, probably prison sentences and are tracking back in double time, saying the exact opposite of what they said before. But look at this paragraph down here. As with other digital assets, third parties can wrap assets onto other chains.

Binance wraps Busd to issue a version on BNB BSC Avalanche and Polygon. Paxos does not issue these non-etherian versions of Busd, but Binance makes their backing visible on chain at the following addresses. So when you go and buy Busd on Binance, when you think you're buying the USD on Binance, you don't actually buy Busd. You know the thing that is regulated and a thing that is held one to one against the dollar in alignment with all the New York laws.

Blah blah blah No. instead you are buying a worthless crypto token that is pegged to be USD and busd is then pegged to the USD And you know the thing with things that are packed in a completely unregulated Way by companies registered in weird jurisdictions is that without any regulatory oversight or any kind of orders, they tend to blow up because the money is very often misappropriated. Yesterday, Uh, Kevin O'leary testified in in front of the Senate and he was asked where did the money go uh, meaning the FTX money and he suggested that one place that the money may have gone is in fact to you. Uh, when Sam Bankman freed back in 21 the summer of 21 effectively bought out your stake in the company How Concerned are you that that money will be uh, clawed back? Are you prepared to hand it back to creditors? If in fact, they were to ask and was it paid to you in U.S dollars in some other kind of currency? Well, first of all, I think um Calvin O'leary Um, he's making a bunch of nonsense claims and they don't make sense.

They don't make any logic. Um, he shouldn't be making those claims as a celebrity investor. I'm actually very surprised that he's able to Omit A lot of different things she said was specifically asked about the 2.1 billion dollars that Binance received from FTX in 2021 to buy out Binance's share in their business. The problem here is that because FTX is now being done for fraud, any money paid out to third parties from the fraud because it is basically money that was earned through fraud going back years may be forced to be repaid.

There was precedent the same thing happened with Bernie Madoff but of course Caesar doesn't want to answer the actual question instead. For whatever reason, he deflects and talks about O'leary Three minutes later, CNBC asks the question again. but let's go just back to back to the the the specifics here in 21. Sam Bankman Freed said that he bought you out your stake in the company I Imagine he would.

He transferred funds to you, likely somewhere between two and three billion dollars. Is that right? I Remember it was 2.1 billion dollars at the time and a big chunk of that is in Ftt tokens, which is not worthless. So he sent you Ftt tokens and you believe that that the majority of the 2.1 billion dollars was that um It's a combination of um I believe was a combination of busd B and B and FDT um I Don't know the exact combination now, but it's probably about um I I Don't remember exactly, but Ftt is a big chunk and that's why we still had. Like you know, we, even after Ftt price dropped over the last year, we still had 500 million dollars worth of it.

Now 580 million dollars worth of it. On the day when we transferred from the address we received a year and a half ago, we never touched it. We actually actually kind of forgot about it. for sake.

this guy can't give a straight answer. So it was most of it an Ftt because last I checked 500 million dollars is not most of 2.1 billion dollars. He just can't stop lying and making up. He just makes two consecutive statements in two consecutive sentences that completely disagree with each other.

So if you had to send a check in US dollars for 2.1 billion dollars, could you? so I think we'll leave that to the lawyers. Um, I think our legal team is perfectly capable of handling it. My expectation, though just from common logic, is that there was a lot of spendings. Um, after that transaction.

Uh, in the more recent times, Ftf's done to, you know Miami no football stadiums, uh, referees sponsorships. Would you be able to handle it? If somebody asked you for 2.1 billion dollars back, Would that be okay? Would you be able to still withstand things we're financially okay, including you have 2.1 billion dollars to give away. If somebody came to Recla to claw that back, you'd still be fine. We'll have a lawyer handling I Find we are financially strong.

So yeah, everybody else will have to pay, but not Binance. Deflected again because you know if he actually comes out and says that of course, Binance will have no issues. If the courts decide that this is going to happen, then this could come back to haunt him if he was to have to take stand in court himself. Although he's already said so much that I'm not sure it would actually matter.

Where did you guys get the money for the 500 million dollar investment in Twitter We don't use customers money we have Revenue Our Revenue comes from Trading fees and we have very solid Revenue We do not spend on crazy advertisements. We're okay. Finance charge is really quite small fees, which is why everybody uses them. They also spend a load of money on Advertising reportedly on hiring millions of people around the world.

Even Cristiano Ronaldo has joined the party in the last few days to promote Binance. These people just don't learn their lesson, do they? Anyway, the obvious question is, where did all of this giant amount of money magically come from? The Magic Money Tree Binance seems to be swimming in billions of dollars that seem to have appeared out of nowhere. Banks that charge much higher fees don't have this level of money to spend, but of course, they didn't use their customers money for anything ever. No, that would be impossible.

And at the same time, Binance went and paid 500 million dollars to help Elon Musk buy Twitter But do not worry bro, it's not like we've ever seen a dodgy crypto platform spending hundreds of millions of dollars on whatever they want on famous people advertising them, promoting sports teams, and generally seemingly having a bottomless bank account while claiming that their customer funds are Safu and there is nothing to worry about.