We Are Delisting BNB From the Fumbi Index Portfolio
Active monitoring and analysis of the market in order to protect our clients’ funds is one of the main pillars of Fumbi. Our experts carefully monitor the cryptocurrency market and evaluate all risk factors that could in any way negatively affect our products and your investments in the future.
Various rumours and speculations regarding Binance’s problems have been circulating in the crypto community in recent days. Regardless of whether these rumours are true or just an attempt to discredit this exchange, the Fumbi team must use all available means to eliminate existing risks to protect client investments.
Reuters reported last week that the U.S. Department of Justice is considering filing charges of possible money laundering against the Binance exchange and its executives, including CEO Changpeng Zhao. However, the U.S. Treasury Department has not yet confirmed this claim. Crypto exchange Binance considers the allegations false, and its founder took to Twitter to urge users to ignore the false information.
The audit of the crypto exchange Binance
The audit of the crypto exchange Binance, carried out by Mazars, also raises doubts about the current situation. However, the scope of the audit was limited to Bitcoin assets only, while the company’s total assets and liabilities were not part of the audit. Although Binance passed the Bitcoin audit, the audit of other cryptocurrencies remains unpublished. Binance promised to publish an audit of the balances of other cryptocurrencies as soon as possible, but so far, this has not happened. Further confusion is also caused by the fact that the audit firm refused to sign off that all of Binance’s accounting is in order.
The situation around Binance was not helped by Tuesday’s suspension of USDC stablecoin withdrawals, which immediately caused a wave of doubts. However, Binance commented on the situation, saying that it informed users of the outage in advance because they were planning to swap some tokens, including USDC, which required a temporary suspension of withdrawals. USDC withdrawals were restarted roughly eight hours later.
Binance has seen a huge number of withdrawals over the past few days. According to analytics platform Coinglass, up to 67,000 Bitcoins have left Binance over the past 7 days, with total outflows reaching up to $3.5 billion over the past 7 days.
BNB in Fumbi Index Portfolio
Due to the many uncertainties surrounding the Binance exchange, we have decided to delist the cryptocurrency Binance Coin (BNB) from our Fumbi Index Portfolio until the situation is resolved and a comprehensive audit of the company is published. All funds that were allocated to the BNB cryptocurrency in the Fumbi Index Portfolio will be distributed among the other assets in the portfolio according to their corresponding weights.
The team of experts from FUMBI will actively monitor the situation surrounding the Binance crypto exchange and its impact on the BNB cryptocurrency. In the event that the ambiguities are resolved, and Binance publishes a full audit, Fumbi does not rule out the re-inclusion of the cryptocurrency Binance Coin (BNB) in the Fumbi Index Portfolio.