Are You Aware Of Fake Audits In Crypto?
Before interacting with a crypto platform, you think about how safe and secure the platform is. No one wants to lose their cryptocurrencies. It is important for the crypto platform to gain the trust of users. After seeing an audit report, you will assure that the crypto platform is safe to use and make any interaction. The U. S. Securities and Exchange Commission warns about fake audits in crypto.
According to Paul Munter, chief accountant of the SEC, accounting firms have obligations, and if their finding is misrepresented while working with a crypto company, it has serious consequences. When accounting firms analyze and review certain parts of the crypto business, that can be presented in the wrong way and a fake audit report will get the business in trouble.
People might put their trust after seeing the audit report and if that's a fake report, that's misleading. People can make the wrong decisions and end up losing financially. Accounting firms have a legal obligation, so it is better to stay away from any company that misrepresents their report to deceive people.
You see only assets of a crypto platform and conclude that is safe because they have sufficient funds in their accounts to meet the users' demand. Don't you think you see only one side? Do you check out the liabilities that the company has? You have to see assets and liabilities to have a better view of that company's financial condition.
When you are convinced by your analysis, you can move forward. You cannot rely on a crypto platform only because some famous guys make endorsements and talk about it. They will not be there when you become a victim and lose your crypto assets.
The warning from the SEC about fake audits in crypto raises concern. There are scammers and hackers that keep making damage in the crypto industry. If crypto companies do some trick to present fake audit reports, that will make people do things that they would not do in the first place. Crypto is like the wild west. Watch out and stay safe.