Binance’s reserves will be audited by Donald Trump’s former auditors

According to journalists, the international company Mazars has already begun auditing the exchange’s proof-of-reserves system

01.12.2022 - 14:00

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Binance, the world’s biggest cryptocurrency exchange, said it has appointed the accounting firm that worked for former President Donald Trump’s company to help assure investors its tokens are covered by reserves.

Binance is using Mazars to independently verify its reserves, a spokesman for the exchange said.

The appointment is part of a so-called proof-of-reserves system that Binance is launching in a bid to reassure investors their money is safe following the collapse of rival FTX. The system is designed to allow investors to check if their individual holdings are covered by reserves.

Several crypto entities, including exchanges and stablecoins, use outside auditors to provide an outside check on their reported assets and, in some cases, liabilities. These verifications, signing off on a snapshot of assets at a specific point in time, are typically much less thorough than a full audit.

Mazars is a mid-tier global accounting firm. Its U.S. arm Mazars USA previously worked for former President Donald Trump’s company. Earlier this year Mazars USA said it would withdraw from its work for Mr. Trump’s company and could no longer stand by financial statements it had previously prepared.

Binance didn’t specify which of Mazar’s offices would be doing the verification of the reserves. A Mazars spokesman declined comment.

This material is taken from the website wsj.com.

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