Binance withdrew its proof of reserves from the auditor’s website
Known for its proof-of-reserve auditing services for cryptocurrency organizations, Mazars Group has apparently withdrawn the audits from its website.
Binance’s proof-of-reserve audits have been withdrawn from the auditor Mazars’ website. According to their website, Mazars no longer has a division called Mazars Veritas, which specialized in auditing bitcoin exchanges.
Mazars created the tool using the Silver Sixpence Merkle Tree Generating tool as a supplement to proof-of-reserve reports in order to increase “confidence and transparency in the digital asset market.”
Bloomberg reported on December 16 that Mazars ceased doing proof-of-reserve audits for crypto firms. Other auditing companies, including FTX’s auditor Armanino, allegedly ceased cooperation with OKX and Gate.io.
Mazars is well recognized as the accounting agency for the corporation of former U.S. President Donald Trump. Late in November, the auditing company was designated as the official auditor for Binance’s proof-of-reserve upgrades.
“Mazars has announced that they would temporarily suspend their work with all of its worldwide crypto customers, including Crypto.com, KuCoin, and Binance,” a Binance spokesman informed Cointelegraph. “Unfortunately, this implies that we cannot cooperate with Mazars at this time,” the spokesman said.
Binance has also gone out to a number of prominent auditing companies, including the Big Four, who is “currently hesitant to undertake a PoR for a private cryptocurrency startup,” according to the spokesman.
CZ also used Twitter to imply that blockchains are transparent by default, writing: “Blockchains are permanent public recordings. The ledger is the most auditable.”
The Binance reserve report instantly raised warning lights for a number of financial experts. One former member of the Financial Accounting Standards Board claimed that the Mazars report lacked information on the strength of Binance’s internal controls and how its systems liquidate assets to pay margin loans.