Crypto Markets End Negative Week Amid Accounting Troubles

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Accounting issues put pressure on crypto investments.

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Cryptocurrency-related assets are ending the week on a negative note with accounting issues appearing to weigh on the market.

BitcoinBTC is down 2% to $16,825 for the week from Friday afternoon, down 3% in the past 24 hours, while Ether slid to $1,198, down 6% Friday and 5% for the week, according to data from Nomics. The global cryptocurrency market fell to $817.4 billion from $854.4 billion, according to a count from CoinMarketCap, down 4% for the week.

Several reports that Mazars, the global accountancy firm based near Paris, has suspended proof-of-reserves reporting for crypto clients, followed a Thursday report from Forbes that rival Armanino is likely to end its practice of audits. digital. Revelations of sloppy accounting during the failed FTX exchange have amplified questions about how carefully crypto firms book their transactions and what level of scrutiny can be expected from auditors.

Binance coin (BNBBNB) slid 7% on Friday to $242, bringing its drop for the week to 16%. Mazars had performed proof-of-work audits for the world’s largest crypto exchange by trading volume.

The crypto audit business may not be worth it for accountants. A source told Forbes that pressure from other companies’ clients to drop crypto could be behind Armanino’s expected pullout, and the same effect could apply to other auditors.

On the stock market, the publicly traded crypto exchange Coinbase fell 5% to $35.97, a weekly decline of 11%. Silvergate CapitalSI, a commercial bank that serves the digital asset industry, fell 3% to $18.29; this marks a 15% drop since December 9.

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