Things have gotten worse for Binance today and it doesn't look good. Hey, everyone meet Kevin here yesterday. I Covered a Binance interview a CNBC Binance CEO interview. Where the CEO let's just say had some embarrassing moments in addition to refusing and dodging the question about whether or not they have ever used customer funds to make investments like potentially a five million dollar investment into Twitter Where did they get that money from and refusing to acknowledge that if they have so much money they say they have 62 billion dollars of assets, why then are they unable to commit that? If they needed to make a 2.1 billion dollar payment, they had sufficient liquidity to do so.

Now of course, anytime a negative piece comes out on Binance, there's an army of Binance bots that I think are just scripts that come out to suggest that either the interviewer or the person covering the story has bias or whatever. Even though when you just look at the interview yourself, it's like hmm. why is the CEO being so dodgy? It should be simple to say no, we don't use customer funds, but they don't do that. It's also really odd when we hear the CEO say oh, we don't owe anybody money, we don't owe any company money, we don't have loans and then in the same interview, the CEO says yeah, we're working on doing an accounting of our liabilities.

This is quite odd, but it's no surprise that after yesterday's disastrous interview, what happened today, well, I'm going to reveal that right after giving you a bit of context. So there's this French accounting firm called Mazars. They're an accounting firm that actually does the accounting for companies like Crypto.com Kucoin, and Binance. And when I say accounting I want to be clear, they do what's known as a proof of Reserves disclosure accounting.

This is basically something that just shows how many assets they have. It's not really a full audit, and even though all of these companies are like oh, don't worry, one day we'll do a full audit, Nobody in this tough environment wants to do a full audit right now, probably because they're worried about being really exposed. We also really question how much revenue these companies are able to bring in right now since crypto volumes have substantially collapsed. And so this creates a concern that if there are revenues, that crypto companies are collapsing and potentially they are somehow through loopholes or otherwise leveraged, Because like the CEO says, oh, they don't owe somebody money, but they have leverage.

Okay, so so you do have liabilities, but you don't owe somebody money. Maybe maybe you're pledging customer assets and so technically you don't have a loan, but you're borrowing money by pledging customer assets. So it's actually your customers assets who have the liability against them and you're using that to go make other Investments whether it's in crypto, venture capital, or speculative Investments to create a yield for yourself, We don't know. And the scary thing about the crypto industry is just that it's one that says it's transparent.

But then when companies or people request audits, the crypto exchanges say we just do proof of reserves. We'll just tell you how many assets we have. We won't tell you how many liabilities we have. Take a listen.

Now that you know a little bit about Mazars, the French firm that does these sort of proof of reserves, accounting or disclosure reports listen to the reference from CNBC yesterday about Mazars and then I'm going to give you the update of what happened today. But even the audit that you're not I shouldn't call it an audit. Even the disclosure that you're doing with Mazars is not I mean you're setting the rules for this. It's not a real audit.

You're telling them what you'll share and you're kind of setting up. They wouldn't call it an audit. So what happened with Mazars today? Well, today, Mazars quit. literally the one company CNBC references as the one company providing any kind of disclosure into binance which we know is also a company that works for Crypto.com and Kucoin has decided they're quitting this French firm is quitting because of indications that markets haven't been reassured by the proof of Reserves reports they have published thus far and therefore they're quitting the entire crypto industry.

It just makes you scratch your head and wonder are things that bad in the crypto industry that the one company doing proof of Reserves reporting has now quit? Of course, many folks in the comments section say ah, CZ and the CEO of Binance is an OG Oh, you know he doesn't have to answer questions. Oh the questions that are being asked are Binance Oh somebody uh or or biased to not buying a finance bias whatever uh or or buys. Oh, you know, somebody reporting on the issue is is, uh, not fair to say anything bad about Binance because they're perfect. You know, like the amount of those sorts of comments are are at bot levels.

It's really weird. and when I look at my YouTube analytics I see at a certain time stamp these interesting spikes in externally sourced views and their views that on average have about a 20 to 30 percent shorter view duration. So I wonder if my videos on Binance or or certain videos catch on? and then somebody like turns on the Bots and all of a sudden we get these external viewerships that aren't actually watching the video as much as normal viewers are potentially humans and they're just leaving spam or hate to try to manipulate the audience's view. The public perception that oh, the creators are wrong, the media is wrong, the interviewers are biased when the reality is, maybe we're on to something I'm a big believer in when there's smoke, there's fire and it's not to say that Binance for sure is going down.

But let me just put it this way. there's a famous saying in Crypto that we've all become very used to Where And it's very simple: It's not your keys, not your crypto. And I think the best recommendation in the crypto world right now is get Off exchanges. We've been saying this since before FTX collapsed.

Been saying this since before Voyager collapsed. The amount of warnings on the channel, as have always been get off exchanges, use the exchanges to buy, but get off soon and stay away from stable coins because that means you're stuck on exchanges and sometimes you're locked up like Crypto.com locks you up for potentially three month increments in stable coins. And now, while that's nice to be able to farm that sort of yield, it might make a lot more sense to farm yield on Treasury Sitting at three and a half to four percent right now, then it might you. Could, you know, farmyield.treasurydirect.gov And then of course you're going to get a bunch of Bot comments they're like, yeah, government Bunch Chill, It's like let's see risk-free asset fully accounted for versus crypto exchange that just lost an accounting firm and they're leaving the entire crypto industry when their only job was to tell people what the assets were, which is also misleading in the first place.

Proof of reserves nonsense. We got to know what liabilities are. We gotta know what the Leverage is, You can't You just can't trust it otherwise. And so it's really, really scary to see.

Uh, the the amount of backlash that is sort of being programmed in social media commentary in comment sections. but I strongly believe the vast majority of those uh uh, you know saying oh, you know this is just fud or just Bots manipulating markets so be very, very careful. and uh, look I wish you the best out there. Not your keys, not your crypto But it's definitely a scary moment when you see Mazarus the One Farm doing this, quitting Kucoin, Binance and Crypto.com Good luck out there.