Binance auditor suspends work with crypto projects

Mazars’ clients also included Crypto.com and KuCoin exchanges

16.12.2022 - 11:35

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What’s new? Mazars, an international auditing firm and Binance crypto exchange’s reserves auditor, has suspended all work for cryptocurrency companies, CoinDesk reports, citing a letter from Binance. Mazars earlier confirmed the exchange’s reserve collateralization of 101%, but the report is no longer available on the company’s website. Mazars’ clients also included Crypto.com and KuCoin platforms.

CoinDesk’s material

What else does the publication report? An audit of KuCoin found BTC, ETH, USDT, and USDC reserves to be overcollateralized, but that report is also no longer available. Mazars’ assessment of Crypto.com’s reserves showed that they are backed at a ratio of 1:1.

Binance CEO Changpeng Zhao wrote on Twitter amid this news that blockchains are public permanent records, and thus are the most auditable ledgers available.

The initiative to audit reserves for crypto exchanges was proposed by Zhao after the collapse of FTX to increase transparency in the industry. On November 25, Binance launched a proof of reserves system. On December 14, analysts at CryptoQuant confirmed the results of the exchange’s audit by Mazars. Crypto exchanges OKX and BitMEX also launched their reserve verification certificates.

Read more about KuCoin’s reserve situation in GetBlock Magazine’s article.

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