Latest Crypto News: Binance Draws Flak Over ‘Internal Controls’; BOE Mulls ‘Proof-Of-Concept’ Wallet For CBDC

Here are some latest developments in the crypto space over the past few days
Latest Crypto News: Binance Draws Flak Over ‘Internal Controls’; BOE Mulls ‘Proof-Of-Concept’ Wallet For CBDC

An investment manager and ex-member of the Financial Accounting Standards Board (FASB) claimed that a recent report by global auditing and consulting firm, Mazars, does not provide enough confidence about Binance's "internal controls".

The report lacks details regarding the effectiveness of the crypto exchange's internal controls, financial position, or how it disposes of assets to pay off margin loans, a media report said, citing the unnamed investment manager.

The report comes after Binance recently suspended a trader's account following his reporting to the exchange about the theft of his API keys.

After the account was terminated on December 9, Binance CEO Changpeng Zhao stated the company did not wish to serve "unreasonable" customers.

On the previous day, a Twitter user named CoinMamba protested about the lost funds, saying a leaked API key linked to the crypto trading firm, 3Commas, was used for trading "low cap coins to push up the price".

"Mamba, there is no way for us to be sure users didn't steal their API keys. The trades were made using the API keys you created. Otherwise, we will be paying users to lose their API keys. Hope you understand," Changpeng said in the tweet.

BoE Mulls Crypto Wallet With “Proof of Concept”

The Bank of England (BOE) is considering a "proof of concept" for a wallet to store Central Bank Digital Currency (CBDC ). The BOE has sought applications from experts on the government's Digital Marketplace for help.

The requirements included a proof-of-concept (PoC) wallet with capabilities like a signup procedure, a mechanism to change details, showing balances and transactions, and displaying notifications.

Terraform Labs Founder Do Kwon ‘Flees’ To Serbia

Do Kwon, the founder and CEO of Terraform Labs, is believed to have fled to Siberia from Singapore to avoid a government probe. According to the South Korean police, he fled Singapore in September and is believed to be in Serbia.

According to a local media report, South Korea's finance ministry, probing Do Kwon's activities, has sought the Serbian government's cooperation to arrest him.

Since the crash of the Terra cryptocurrency, South Korean authorities have been trying to apprehend Do Kwon without much success.

US Justice Department Probes FTX

FTX CEO Sam Bankman-Fried, alias SBF, may not be able to evade arrest for long as cases build up against him. The US Justice Department is probing allegations of syphoning money abroad against SBF days before FTX filed for bankruptcy.

According to a Bloomberg report, the Bankman-Fried-led FTX is also being investigated for various other frauds.

The government is probing SBF's role in fraudulently transferring FTX cash to the Bahamas after the exchange filed for bankruptcy on November 11.

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