The firm specializing in corporate auditing, Mazars, has announced the pause of its activities for clients in the cryptocurrency industry. In particular, she carried out checks on proof of reserves for the exchange platforms Crypto.com, Kraken and especially Binance, whose procedure was recently singled out.
Mazars dissociates from Binance
The information was confirmed by Binance today, in an email statement. The French firm specializing in business audits and recognized internationally, Mazarsannounced the suspension of its activities in the cryptocurrency sector and the removal of the report on the Binance platform.
As a reminder, in the wake of the fall of FTX, centralized exchanges have been pushed to make a proof of reserve. This process consists of transparently communicate wallet addresses of the company to prove that the funds of the customers are indeed there.
Then immersed in a media turmoil, against the backdrop of insolvency and legal investigation, Binance published its proof of reserve last week. As with Crypto.com and Kraken before it, Changpeng Zhao’s platform went through Mazars to audit and validate it.
👉 What is Proof of Reserves and can it restore trust in centralized platforms?
We learned there that Binance bitcoin reserves are 101% over-collateralized. However, this audit did not reassure customers. On the contrary, the procedure was deemed flawed and the conclusions would therefore not confirm the solvency of Binance.
It is very likely that Mazars was afraid of tarnishing his reputation and preferred to withdraw from activities related to the cryptocurrency industry. At the time of writing, audit reports from Binance, Crypto.com, Kraken and KuCoin are no longer available on their websites.
Binance Coin (BNB) price fell directly after the announcement, down about 5% in the last 24 hours. Similarly, Crypto.com’s CRO lost 3.9% and KuCoin’s native token (KCS) lost around 2.5%.
👉 Also in the news – CryptoQuant confirms that Binance reserves have nothing similar to FTX
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