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The Breakdown

Audit Firms Don’t Want to Work With Crypto Companies, and That’s a Problem

The Breakdown

Blockworks

Investing, Business

4.8786 Ratings

🗓️ 20 December 2022

⏱️ 15 minutes

🧾️ Download transcript

Summary

This episode is sponsored by Nexo.io, Circle and Kraken.   On today’s episode, NLW catches up on the latest in the crypto industry, including: Sam Bankman-Fried changes his tune on extradition DCG-owned coins on the move Audit firms ceasing crypto operations    (CoinDesk is an independent operating subsidiary of DCG.)    - Nexo is a security-first platform where you can buy, exchange and borrow against your crypto. The company ensures the safety of your funds and keeps innovating with products like the Nexo Wallet - a non-custodial smart wallet that allows you to create your Web3 identity. Get early access at nexo.io/wallet. - Circle, the sole issuer of the trusted and reliable stablecoin USDC, is our sponsor for today’s show. USDC is a fast, cost-effective solution for global payments at internet speeds. Learn how businesses are taking advantage of these opportunities at Circle’s USDC Hub for Businesses. - Kraken, the secure, trusted digital asset exchange, is our sponsor for today's show. Kraken makes it easy to instantly buy 185+ cryptocurrencies with fast, flexible funding options. Your account is covered by regular Proof of Reserves audits, industry-leading security and award-winning Client Engagement, available 24/7. Sign up and trade today at kraken.com/breakdown. - “The Breakdown” is written, produced by and features Nathaniel Whittemore aka NLW, with editing by Rob Mitchell and research by Scott Hill. Jared Schwartz is our executive producer and our theme music is “Countdown” by Neon Beach. Music behind our sponsors today is “Glasgow” by Falls. Image credit: Feodora Chiosea/Getty Images, modified by CoinDesk. Join the discussion at discord.gg/VrKRrfKCz8.

Transcript

Click on a timestamp to play from that location

0:00.0

To the extent that crypto has to interact with the rest of the financial world, there are two ways

0:04.4

in which they can lose their access to key infrastructure such as auditors and banking.

0:08.9

One is regulatory for rules to change in such a way that crypto companies just can't get

0:13.4

banked or can't get audited.

0:15.0

But then there's also the free market way, which is exactly what we're seeing here,

0:18.6

where the risk dramatically outweighs the reward,

0:24.9

and those independent parties aren't willing to do the work on behalf of crypto clients.

0:29.8

Welcome back to The Breakdown with me, NLW.

0:35.8

It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.

0:38.7

The breakdown is sponsored by nexo.io,

0:46.0

circle and crack it, and produced and distributed by coin desk. What's going on, guys? It is Monday December 19th, and today we are catching up on Barry Coins, Sam Extradition, Binance buying Voyager,

0:52.8

Trump NFTs, you name it, we are catching up on it.

0:55.4

But before we get into that, if you are enjoying the breakdown, please go subscribe to it,

0:59.3

give it a rating, give it a review, or if you want to dive deeper into the conversation,

1:02.9

come join us on the Breakers Discord. You can find a link in the show notes or go to bit.

1:06.5

LY slash breakdown pod. All right, friend, as you can hear, I have once again succumbed to a

1:12.9

preschool illness. However, we are not letting that get us down. You're just going to have to deal with a

1:17.8

slightly huskier voice this time. This past weekend was extremely busy as weekends go. You had

1:25.1

berry coins selling, Sam extradition intrigue, an insane World Cup final,

1:30.0

and Elon Musk pissing everyone off changing terms on Twitter, and then making a poll responsible

1:34.9

for his future at the company. So let's see how much we can get through on today's show.

1:40.2

Let's start with the Sam update as it's relatively small. So last week when Sam was arrested on Monday, he appeared willing to fight tooth and nail to

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