Crypto Twitter Labels Sen. Warren as ‘Deaf to Crypto Audit’ Amid SVB Crash

U.S. Senator Elizabeth Warren’s latest tweets about “fake cryptocurrency audits” and holding auditors “accountable” have caused an uproar in the Twitter cryptocurrency community.

The community said the tweet was Warren’s latest attempt to demonize the cryptocurrency industry, calling her “deaf” in the banking crisis involving Silicon Valley Bank (SVB)

“Fake Audit”

Warren tweeted her support for the Public Company Accounting Oversight Board’s (PCAOB) recent claim that cryptocurrency companies’ proof-of-reserve audits are substandard and investors should be “extremely cautious in relying on them.”

The PCAOB issued the advisory on March 8 and said it was motivated by concerns that investors were putting too much faith in PoR reports. it says:

“It is important for investors to note that the PoR business is not an audit and, therefore, the related report does not provide any meaningful assurance to investors or the public.”

Warren said the move was a step in the right direction, but called on the PCAOB to do more so “consumers aren’t carrying bags when shady cryptocurrency companies fail.”

cryptocurrency twitter

Crypto Twitter has been reeling from USDC depegs from the SVB debacle after Circle announced that around $3.3 billion of its cash reserves for stablecoins are sitting in failed banks. The community highlighted multiple bank failures in recent days and asked whether the senator had done anything about them as well.

Coin Metrics co-founder Nic Carter responded to Warren’s tweet and questioned whether the senator would “apologize” for causing the Silvergate run and “putting the nation’s banks into chaos.”

Additionally, Carter said the PCAOB announcement was misleading and was part of Warren’s plan to prevent auditors from servicing cryptocurrency companies.

Meanwhile, BlockTower Capital founder Ari Paul said that, contrary to Warren’s claims, Silvergate — a cryptocurrency-related bank — has successfully fulfilled all withdrawal requests, while the “much larger” Cryptocurrency bank SVB failed to do so and launched a bankruptcies of many “good companies”

Others echoed the sentiment, calling Warren “anti-innovation” and “politicizing banking.” Some even claimed she colluded with short sellers and got paid off, while others simply accused her of dishonesty.

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