2 years ago
U.S. Senator Elizabeth Warren’s latest tweet astir “sham crypto audits” and holding auditors “accountable” has caused a furor among the Twitter crypto community.
The assemblage said the tweet was Warren’s latest effort to demonize the crypto manufacture and called it “tone deaf” amid the banking situation involving Silicon Valley Bank (SVB)
‘Sham audits’
Warren was tweeting successful enactment of the Public Company Accounting Oversight Board (PCAOB) precocious proclaiming that crypto companies’ proof-of-reserve audits are not up to modular and investors should “exercise utmost caution erstwhile relying connected them.”
The PCAOB issued the advisory connected March 8 and said it was driven by concerns that investors are placing excessively overmuch spot successful PoR reports. It said:
“Importantly, investors should enactment that PoR engagements are not audits and, consequently, the related reports bash not supply immoderate meaningful assurance to investors oregon the public.”
Warren said the determination was a measurement successful the close absorption but called connected the PCAOB to bash much truthful “consumers aren’t near holding the container erstwhile shady crypto firms collapse.”
Crypto Twitter up successful arms
Crypto Twitter has been reeling from the USDC depeg caused by the SVB meltdown aft Circle announced that astir $3.3 cardinal of its currency reserves for the stablecoin were held astatine the collapsed bank. The assemblage highlighted the aggregate slope failures successful caller days and asked whether the Senator doing thing astir those arsenic well.
Coin Metrics co-founder Nic Carter said responded to Warren’s tweet and questioned whether the Senator volition “apologize” for causing a slope tally astatine Silvergate Bank and “plunging the nation’s banks into chaos.”
Additionally, Carter said the PCAOB’s proclamation was misleading and portion of Warren’s program to halt auditors from servicing crypto firms.
Meanwhile, BlockTower Capital laminitis Ari Paul said successful opposition to Warren’s claims Silvergate — which is simply a crypto-connected slope — has managed to grant each withdrawal requests, portion the “far larger” non-crypto slope SVB has failed to bash truthful and pushed a batch of “good companies into bankruptcy”
Other radical echoed the sentiments and said Warren was “anti-innovation” and “politicizing banking.” Some went arsenic acold arsenic to allege she was successful cahoots with short-sellers and paid off, portion immoderate simply called her names for being disingenuous.
The station Crypto Twitter labels Senator Warren ‘tone deaf’ connected crypto audits amid SVB meltdown appeared archetypal connected CryptoSlate.
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