Binance has done their 11th audit and once again it is based on “self-verification“, if they really have nothing to fear there should be Third-party audits instead…

First and foremostly I want to clarify that my intention is not to spread any kind of FUD around Binance with this post as there has been in the past weeks. Instead it is just the best objective report I can do.

We all remember the onrush of exchanges to the concept of “Proof of Reserves“ after the FTX collapse in November of last year, which showed how CEXs were not holding customer assets 1:1, but instead were just gambling them away and once everyone wanted to withdraw their own money, the whole exchange would just collapse. Then this Proof of Reserves system was invented and it was supposed to increase customer trust in exchange by verifying their assets.

Obviously the biggest Crypto Exchange, Binance, was not behind on that and has just recently made their 11th “audit“ for their assets:

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Binance 11th self-verification audit results, picture from Crypto Rover on X

But well, we can see a very clear problem here, while many CEX actually went out to take the help of renowned auditors, even the likes of Deloitte, Binance is just here making their audits through self-verification, which is another word for we just put the numbers there as we like to. And obviously we would have amazing numbers like those.

It just is a mystery why Binance never actually got an actual auditor while others like Kraken have gone all the way to get the best possible auditors for their Proof of Reserves. This just looks shady all over and I don‘t think that a simple “4“ by CZ can resolve this.