- Earlier investors in Binance reveal that the exchange doesn’t have one particular CFO to maintain a decentralized architecture.
- As per reports, Binance has been looking for a Tier-1 auditor now for a month.
Ever since the multi-billion dollar collapse of the crypto exchange FTX, doubts have been raised over the health of Binance and its business operations. The fact that Binance has no official country of registration makes it challenging for implementing laws and regulations on the exchange.
This month, Binance faced over $7 billion worth of withdrawals in just three days and the exchange has managed to handle them effectively well. Binance also noted that they have more than $60 billion worth of liquid assets by the end of November 2022.
Popular Bitcoin investor Mike Alfred has shared some additional information on Binance’s financial position and a few more developments. Alfred said that he recently spoke with a fund manager who is closely associated with some of the earliest investors in Binance.
Just got off the phone with a fund manager closely connected to one of the earliest investors in Binance. He said a few interesting things:
1. He confirmed that Binance has no CFO. CZ doesn’t want a single centralized CFO. Binance has 20+ employees in its Treasury and they…
— Mike Alfred (@mikealfred) December 22, 2022
As per the insider information, Binance doesn’t have a CFO. Binance chief Changpeng Zhao doesn’t want a single “Centralized” CFO and thus there are over 20 employees in the Binance Treasury that together serve as “decentralized CFO”.
Furthermore, Alfred notes that Binance is currently in active discussions with some “keystone” investors. This includes names like Warren Buffett’s Berkshire Hathaway. Binance believes that another equity round will provide enough support and credibility to the company.
Note that there’s no official information on this matter yet and knowing the fact that Warren Buffett has been a harsh critic of Bitcoin and crypto, it will be interesting to see whether he invests in this crypto firm.
Binance Looking for An Auditor
Ever since the collapse of the crypto exchange FTX, Binance has been exploring ways to bring more transparency to the industry. Binance started with the concept of sharing Proof-of-Reserves to bring more transparency to the industry. It also conducted its Proof-of-Reserves audit by accounting Mazars Group which received major criticism as investors said that it didn’t reveal enough information about Binance’s financial health.
Things got interesting when Mazars Group said that it would stop working with Binance and other crypto clients. Binance chief CZ said that the biggest challenge for crypto firms is finding the right auditor. In a CNBC interview earlier this month, CZ said:
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.
But citing sources closer to the matter, Mike Alfred said: “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 notes that Binance has recently invested $500 million in Twitter and also burnt $547M in BNB last quarter alone. The investor believes that Binance has never been stronger financially.
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