Weeks ago Binance admits to the mistake of storing users funds in a collateral wallet, is this not why they passed the Reserve Audit?🤦 All they have to do is just move crypto assets that belongs to exchange users into their collateral wallet and pass the audit and avoid getting caught. Then they go on Twitter and make a tweet that
"Funds are Safu".
https://dailyhodl.com/2023/01/24/binance-admits-to-mistake-of-storing-its-users-crypto-assets-inside-collateral-wallet-report/I believe the came out in the open before someone else does, to keep their reputation in checked.
As for the auditors, they don't even know how to audit in the first place, or is it right to say that exchanges just know how to get smarter than auditors?
Anyway, it's easier for them to meddle with users funds and do what they feel like, FTX Sam was caught doesn't mean he is the only bad actor, others aren't pure as well.
No matter what you plan to do on centralised exchanges, do not trust them.
I think there has to be an independent body of Auditors who specifically specialise in the audit of crypto exchanges they should have the necessary expertise and should do audit in regular intervals so it's not easy for the exchanges to fool them as well. But obviously such a thing is hard to be implemented in a decentralised society especially when it's against an exchange like Binance.