First Mover Americas: Crypto Auditing Hits Snag

The latest price moves in crypto markets in context for Dec. 16, 2022.

AccessTimeIconDec 16, 2022 at 1:26 p.m. UTC
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Binance’s proof-of-reserves auditor Mazars has paused all work for its crypto clients, Binance, the world's largest crypto exchange by trading volume, said in an emailed statement. "Mazars has indicated that they will temporarily pause their work with all of their crypto clients globally, which include Crypto.com, KuCoin and Binance. Unfortunately, this means that we will not be able to work with Mazars for the moment," a Binance spokesperson said. The accounting firm performed a proof-of-reserves assessment of Binance earlier this month, finding its bitcoin reserves were overcollateralized. Bitcoin coin (BNB) fell after the announcement. It has lost about 5% in the past 24 hours, CoinDesk data shows.

FTX, the crypto exchange that filed for bankruptcy last month, wants to sell its functioning units, including its U.S.-based derivatives wing LedgerX. On Thursday, the exchange petitioned a U.S. bankruptcy court for permission to sell several subsidiaries, including FTX Japan, FTX Europe and Embed Business. "Based on their preliminary review, the debtors own or control a number of subsidiaries and assets that are regulated, licensed and/or largely not integrated into the debtors’ operations, within and outside of the United States," the filing said. "The debtors believe a number of these entities have solvent balance sheets, independent management and valuable franchises."

Crypto trading firm Amber Group changed its fundraising strategy to raise $300 million in a Series C round, as a reaction to the fall of FTX. The collapse of the exchange affected some of Amber’s products and customers, increasing the need to raise capital quickly. Amber decided to move from its efforts to raise a Series B+ round at a $3 billion valuation in favor of a Series C. "Post the FTX collapse, we paused [the series B+ fundraise] after a partial closing and instead moved forward on Series C," the firm said.

Bitcoin (BTC) was down 4% to just below $17,000 early Friday Eastern time, and ether (ETH) dropped 6% to $1,212 as more bad news in the crypto world keeps coming forth. U.S. stock futures also pointed down after the Dow Jones Industrial Average sank 764 points on Thursday on recession fears.

Chart of the Day

Chart of the Day 12/16/22
  • The chart shows daily trading volume in bitcoin and ether futures markets since December 2020.
  • Trading activity has slowed to levels last seen roughly two years ago, representing the impact of global liquidity tightening and widespread deleveraging and contagion from the collapse of several industry bigwigs, including Terra, Three Arrows Capital and FTX.
  • The exodus of leverage traders means less speculation, which is perhaps a positive development in the eyes of those averse to the cryptocurrencies' high volatility. It's not great for liquidity, however.

– Omkar Godbole

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CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Lyllah Ledesma

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.

Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.


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