Prominent investor Michael Burry poured cold water on audits conducted by major crypto firms
Prominent investor Michael Burry criticized the audits conducted by various cryptocurrencies in a recent tweet.
Burry claims that audits started “learning on the job” back in the mid-2000s when he began using a new line of credit.
The famous investor and hedge fund manager is best known for predicting and profiting from the subprime mortgage crisis of 2007–2008 by betting against the housing market, which was detailed in Michael Lewis’s book The Big Short. A 2015 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 and also features Steve Carell, Ryan Gosling, Melissa Leo and other movie stars.
Michael Burry has been publicly critical of cryptocurrencies, describing them as “the mother of all scams.” He has stated that he believes Bitcoins and most other cryptocurrencies are highly overvalued.
Last October, he took aim at meme coin Shiba Inu (SHIB), describing it as “pointless.”
As reported by U.Today, Mazars, Binance’s auditor, announced that it would no longer cooperate with cryptocurrency clients. The accounting firm had previously been providing proof-of-reserves reports for major exchanges such as Binance to help assuage clients’ apprehensions that the exchanges have sufficient assets to cover customer deposits.
According to the Financial Times, the report saw billions of dollars worth of outflows due to the controversy surrounding Mazars.