I think it's outright comical that Binance performing an unsolicited audit is deemed a "red flag" by some random person claiming to have authority. It's not a red flag because he never had to do the audit in the first place.

CZ has been on the front lines of this entire ordeal basically begging for a bank run across every single centralized exchange, including his own. Binance does not make money from users depositing crypto within their cold storage. They make money on trading fees. They even make a little money on withdrawals as well, so this bank run gives them a slight profit.

CZ poured gasoline on a fire knowing that his house is made out of bricks and the other houses (which are competition) just might burn to the ground. It's basic capitalism and no cause for alarm.