Monday, March 27, 2023
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Auditing Firm Mazars Halts Work With All Crypto Clients Including Binance, Crypto.Com, KuCoin

  • Audit Firm Mazars recently halted operations for massive crypto exchanges, including Binance, Crypto.Com, and KuCoin, following FTX’s Collapse, according to Bloomberg.
  • Previous audit reports have been taken down from their website.
  • Binance saw a withdrawal of $1B earlier this week following fears of investigations from the US Justice Department.

Audit Group Mazars is halting any work with crypto clients such as Binance, the world’s current largest crypto exchange. The crypto sector has been under enormous scrutiny recently following the fallout of the significant crypto exchanges FTX and FTX.US. According to a Bloomberg report, previous audit reports are currently inaccessible on Mazar’s website, as the links are broken.

The accounting firm, Mazars, was hired by Binance to conduct a “proof of reserves” report. A Binance statement on Friday confirmed that Mazars had indicated they would temporarily pause all work with global crypto clients, including clients such as Crypto.Com, KuCoin, and Binance.

The website responsible for crypto audits appears to be shut down, and Mazars has not issued any further statements.

Most big crypto exchanges, such as Crypto.Com, KuCoin, and Binance, have worked with Mazars to provide audit reports on their reserves in November, following the fallout of crypto exchange FTX.

Earlier this week, Binance saw a withdrawal amount of over $1BN as fear in centralized exchanges is at an all-time high. “Over the past week, Binance passed a stress test that should give the community extraordinary comfort that their funds are secure,” Binance said on Friday, confirming it was able to fulfill recent withdrawals “without breaking stride.”

The following outflow followed due to recent probes by the U.S Justice Department holding Binance under investigation on Money Laundering and Tax Avoidance charges.

Binance previously confirmed it holds more than $60B in assets, ensuring that the funds should be sufficient to honor all withdrawals. Still, it is yet to provide a disclosure of its liabilities. This figure has also been confirmed by Nansen Data which shows that Binance has over 55.6B in asset reserves.

According to a statement shared by Binance on Friday, the exchange confirmed that it has attempted to reach out to multiple large auditing firms, including ones in the Big Four, which are currently unwilling to conduct a proof of reserve for a private company. Binance is still looking for a firm willing to do so. The exchange did not commit to a timeline on when this would be achieved.

Source: Nansen


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