Sen. Warren calls out 'sham audits' while SVB threatens crypto bankruptcy

cointelegraph.com:

United States Senators Elizabeth Warren and Ron Wyden asked the Public Company Accounting Oversight Board (PCAOB) to hold auditors accountable for failed crypto projects. 

The PCAOB — a non-profit overseeing the audits of public companies and other issuers — recently stated that proof-of-reserves (POR) are not equivalent to audits and are not conducted in accordance with PCAOB auditing standards. POR is a method widely adopted by crypto exchanges to confirm the availability of users’ funds. However, Sen. Warren demanded stricter oversight:

The crypto community contrasted her statement as numerous members highlighted the ongoing collapse of Silicon Valley Bank (SVB), a Federal Deposit Insurance Corporation-insured bank.

.@RonWyden and I called on @PCAOB_News to hold auditors accountable for sham crypto audits and I'm glad they're taking this step to protect investors. But let's be clear: there's more PCAOB needs to do so consumers aren't left holding the bag when shady crypto firms collapse. https://t.co/cRJxwL2gBL

On the other hand, with SVB single-handedly contributing to the price instability of the Circle-issued USD Coin (USDC) token, Crypto Twitter questioned Warren’s stance around the collapse of a non-crypto-related bank.

Responding to Sen. Warren, Ari Paul, the founder of blockchain investment firm Blocktower Capital, highlighted how SVB is pushing crypto companies into bankruptcy, stating:

Tesla CEO Elon Musk shared a meme for the occasion, showcasing the dilemma of investors when it comes to trusting traditional banks and crypto businesses with their money.

pic.twitter.com/tTMWOHcUom

As previously reported by Cointelegraph, the investor advisory from the PCAOB’s Office of the Investor Advocate reminded users to not