Genesis Global Capital, Luno's lending partner for Savings Wallet yield, has halted withdrawals

[quovadis]

 

[SauRoNZA]

So basically all eyes on Tether?

I mean I wouldn't be surprised if they have the largest holdings of that too, but who knows.

 

[NarrowBandFtw]

I don't suppose there is an accountant watching who would like to look at the proof of reserves audit for Luno at https://discover.luno.com/wp-content/uploads/2022/10/Luno-POR-Report-30-September-2022-1.pdf ?

Is it just me or was very little real verification done? To me it looks like nothing more than was done for FTX.

errr Mazars are accountants and internationally recognized auditors?

auditors will never publish all the detail they poured over, they would have access to confidential information, they would simply publish their professional conclusion, which is what that is

looks more detailed than a typical attestation even

 

[notayoba]

I don't suppose there is an accountant watching who would like to look at the proof of reserves audit for Luno at https://discover.luno.com/wp-content/uploads/2022/10/Luno-POR-Report-30-September-2022-1.pdf ?

Is it just me or was very little real verification done? To me it looks like nothing more than was done for FTX

Mazars left themselves a lot of wiggle room

"We make no representation regarding the appropriateness of the AUP. This AUP engagement is not an assurance engagement. Accordingly, we do not express an opinion or an assurance conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported."

So basically: We can confirm that Luno showed us some papers, and they sure do look like papers.

 

[hj007]

Mazars left themselves a lot of wiggle room

"We make no representation regarding the appropriateness of the AUP. This AUP engagement is not an assurance engagement. Accordingly, we do not express an opinion or an assurance conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported."

So basically: We can confirm that Luno showed us some papers, and they sure do look like papers.

Agreed.. also what are the reserves held in, are they ZAR or are they something else that were equivalent value on a MTM-basis at the time.
Also Mazars is a point-in-time snapshot of reserves, could change between date of measurement and today.

 

[NarrowBandFtw]

Agreed.. also what are the reserves held in, are they ZAR or are they something else that were equivalent value on a MTM-basis at the time.

well you know not one cent is in LUNO coin, seeing as Luno does not have an exchange token at all (which is one of the main reasons Voyager, Celsius and FTX had issues, they all issued their own tokens)

Also Mazars is a point-in-time snapshot of reserves, could change between date of measurement and today.

that's what audit reports are though, what else do you expect? something like Nexo's "realtime" audit which is a complete farce?

 

[quovadis]

what else do you expect?

Clearly …

an assurance engagement

and …

additional procedures

 

[NarrowBandFtw]

Clearly …

and …

high expectations for an industry that has no formal audit requirements nor established practise

at least it looks better than all the johnny-come-lately's who just dump wallet addresses in response to a market meltdown

you can get a Mazars/Luno report for every quarter from Q3 2021 onwards:

Luno releases full verification of customer cryptocurrency - Luno

This Proof of Reserves report gives you peace of mind that Luno has your cryptocurrency safely stored for you to use whenever you want.

discover.luno.com

 

[quovadis]

high expectations for an industry that has no formal audit requirements nor established practise

at least it looks better than all the johnny-come-lately's who just dump wallet addresses in response to a market meltdown

you can get a Mazars/Luno report for every quarter from Q3 2021 onwards:

Luno releases full verification of customer cryptocurrency - Luno

This Proof of Reserves report gives you peace of mind that Luno has your cryptocurrency safely stored for you to use whenever you want.

discover.luno.com

Surely considering the frequency of meltdowns and bankruptcy in the industry that it’s in the interest of those like Luno to pay for the additional assurance and set an example?

 

[NarrowBandFtw]

Surely considering the frequency of meltdowns and bankruptcy in the industry that it’s in the interest of those like Luno to pay for the additional assurance and set an example?

and having quarterly audits published for the past 5 quarters when there was no meltdown even remotely on the horizon is not "setting an example"?

 

[quovadis]

and having quarterly audits published for the past 5 quarters when there was no meltdown even remotely on the horizon is not "setting an example"?

It’s not an assurance audit. They’re trusting what Luno supplies is accurate and a true reflection.

 

[NarrowBandFtw]

It’s not an assurance audit. They’re trusting what Luno supplies is accurate and a true reflection.

fair enough ... but you don't think it is:
- a start?
- an established practise for Luno at least?
- better than any other crypto exchange seems to be doing?

 

[SauRoNZA]

Agreed.. also what are the reserves held in, are they ZAR or are they something else that were equivalent value on a MTM-basis at the time.
Also Mazars is a point-in-time snapshot of reserves, could change between date of measurement and today.

I would imagine the reserves would be different for every country/jurisdiction they operate in.

 

[quovadis]

fair enough ... but you don't think it is:
- a start?
- an established practise for Luno at least?
- better than any other crypto exchange seems to be doing?

It's fair enough however back to the original point which was that in the current climate you'd expect customers/users to demand more and/or Luno and other big players to do more.

Mazars should also consider their participation even with qualification of the limitations of their audit may not be interpreted by the average user as not reflecting an actual assurance.

 

[Park@82]

Also saw that. I enjoy watching some of his stuff.

 

[NarrowBandFtw]

BlockFi suspended withdrawals and has not (yet) declared bankruptcy

what a difference 12 days make ...

BlockFi files for bankruptcy, cites FTX collapse for its troubles

BlockFi files for bankruptcy just weeks after denying it had been significantly exposed to FTX.

cointelegraph.com

 

[notayoba]

Genesis is next I reckon. Followed by DCG and Luno.

 

[Park@82]

Genesis is next I reckon. Followed by DCG and Luno.

@NarrowBandFtw

Is Trust Wallet any good?

Asking for a friend.

 

[NarrowBandFtw]

Genesis is next I reckon. Followed by DCG and Luno.

1 out of 3 max, only one of those have liquidity issues

but time will tell

 

[NarrowBandFtw]

@NarrowBandFtw

Is Trust Wallet any good?

Asking for a friend.

two things I do not trust (pun intended) about it:
1: it is an online wallet, by default that makes it less secure than an offline wallet
2: Binance owns it, I prefer my wallets to be as independent as possible from any centralized exchange

aside from that I have no experience with it or information on it, perhaps others here know more and can weigh in