Investor Michael Burry criticized the audits conducted by various crypto-currencies in a recent tweet.
Burry claims that the audits started at “learning on the job” in the mid-2000s, when he began using a new line of credit.
This is the problem. In 2005 when I started using a new kind of credit default swap, our auditors were learning on the job. That’s not a good thing. Same goes for FTX, Binance, etc. The audit is essentially meaningless. pic.twitter.com/mA3MMvaUTu
– Cassandra B.C. (@michaeljburry) December 16, 2022
The hedge fund manager is best known for predicting and profiting from the 2007-2008 subprime mortgage crisis by betting against the housing market, which was detailed in Michael Lewis’ book, The Big Short. In 2015, a biographical drama film entitled The Big Short tells the story of Burry’s role in the 2008 financial crisis. The film stars Christian Bale as Burry, along with Steve Carell, Ryan Gosling, Melissa Leo and other movie stars.
Michael Burry has publicly criticized crypto-currencies, describing them as “the mother of all scams“. He stated that he believes bitcoin and most other crypto-currencies are highly overvalued.
Last October, he lashed out at the Shiba Inu meme currency (SHIB), which he described as “the mother of all scams“.
Mazars, the auditor of Binance, announced that it would no longer cooperate with cryptocurrency clients. The accounting firm previously provided proof-of-reserves reports for major exchanges like Binance to allay client apprehensions that the exchanges have enough assets to cover client deposits.
According to the Financial Times the report recorded billions of dollars in capital outflows due to the controversy surrounding Mazars.