Binance Auditor Mazars Suspends Work From Crypto-Related Clients

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Auditing firm Mazars, which has worked with Binance and other crypto exchanges on proof-of-reserve statements, has ceased all work with crypto clients.

Mazars no longer serves customers who use cryptos

According to an article published by Bloomberg, Mazars, the auditing firm that works with Binance and other cryptocurrency exchanges on proof of reserves statements, has halted all operations for crypto clients.

The company will temporarily suspend work with all of its cryptocurrency clients globally, including Crypto.com, KuCoin, and Binance. The Binance representative confirmed that the company would not be able to collaborate with Mazars.

Following the announcement, bitcoin fell 2.4% to $16,978 at the start of European trading.

BTC/USD on December 16. Source: CoinMarketCapBinance and Kucoin PoRs removed by Mazar

After cryptocurrency exchange FTX collapsed in November, Paris-headquartered Mazars led the industry rush to undertake so-called proof-of-reserves reports for exchanges like Binance and other majors. .

The accounting firm assessed Binance’s proof of reserves position and found that its bitcoin holdings were over-collateralized. The report’s online URL is no longer active.

Additionally, the auditor discovered that Kucoin’s reserves of BTC, ETH, USDT, and USDC were all over-collateralized. This report is no longer accessible either. According to Mazar, Crypto.com reserves are fully backed by 1:1.

Other auditors are also terminating crypto services

Binance also highlighted the importance of having these proof of reserves reports reviewed by impartial auditors:

“We have contacted several large companies, including the Big Four, who no longer wish to perform PoR for a private crypto company, and we are still looking for a company that will.”

An official comment from Binance

In fact, Mazars is one of many accounting firms to stop working with cryptocurrency companies. On Thursday, longtime crypto accounting partner Armanino announced the end of its crypto auditing services.

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