There have been concerns about Binance and its business operations ever since the multi-billion dollar bankruptcy of the cryptocurrency exchange FTX. It is difficult to enforce rules and regulations on the exchange because Binance is not formally registered in any country.
In just three days this month, Binance had to deal with more than $7 billion in withdrawals, yet the exchange handled them skillfully. Binance also stated that by the end of November 2022, they would have liquid assets valued at more than $60 billion.
Mike Alfred, a well-known Bitcoin investor, has provided some fresh details on Binance’s financial situation as well as some new developments. Alfred claimed to have just spoken with a fund manager who was in direct contact with some of the very first Binance investors.
Since Changpeng Zhao, the CEO of Binance, does not want a single “Centralized” CFO, the Binance Treasury now employs over 20 people who together act as “decentralized CFOs.”
Alfred also mentions that several “keystone” investors are now engaging in discussions with Binance. This includes brands like Berkshire Hathaway, owned by Warren Buffett. Binance thinks that a second equity investment will give the business the necessary backing and legitimacy.
Since the collapse of the cryptocurrency exchange FTX, Binance has been looking at measures to increase industry transparency. Binance began with the idea of distributing Proof-of-Reserves to increase industry transparency.
Additionally, it hired accounting firm Mazars Group to undertake its Proof-of-Reserves audit, which drew harsh criticism from investors who felt that it withheld too much information regarding Binance’s financial situation.
When Mazars Group announced that it would no longer work with Binance and other cryptocurrency customers, things really got interesting. Finding the ideal auditor is the largest difficulty facing crypto companies, according to CZ, the CEO of Binance. CZ stated in an interview with CNBC earlier this month:
“Interestingly, many audit firms are kind of scared to work with crypto businesses. Many of those auditing firms “don’t know how” to audit crypto changes They don’t know how to audit user assets, different blockchains.”
However, Mike Alfred stated, citing sources who were more familiar with the situation: “Binance has been in active discussions with a tier 1 auditor for a month. Waiting to see whether they will take them as a client”.
Alfred further points out that Binance recently burned $547 million in BNB and invested $500 million in Twitter. The investor thinks that Binance’s financial position is better than it has ever been.