Mazars Group’s Website:
The audits have been taken off from Mazars Group’s website, which is recognised for providing proof-of-reserve audit services to cryptocurrency businesses.
The website of auditor Mazars has taken down the proof-of-reserve audits for cryptocurrency exchange Binance.
According to the company’s official website, Mazars Veritas, a division devoted to auditing cryptocurrency exchanges, has been completely stopped. The tool was created by Mazars utilising the Silver Sixpence Merkle Tree Generating tool to supplement proof-of-reserve reports to “bring trust and transparency to the digital asset market.”
Additionally, Mazars ceased performing audits of proof-of-reserve for bitcoin companies, according to Bloomberg on December 16. Other auditing companies have quit working with cryptocurrency exchanges, including OKX and Gate.io, including FTX’s auditor Armanino.
KuCoin And Crypto.com:
The accounting firm of former US President Donald Trump’s business is known as Mazars. In late November, the auditing company was chosen as the official auditor for Binance’s proof-of-reserve upgrades.
KuCoin and Crypto.com, two competing cryptocurrency exchanges, have followed Binance’s example and partnered with Mazars as part of their reserve reports.
Changpeng “CZ” Zhao, CEO of Binance, immediately responded to the news on Twitter with a retweet from a random commenter. Claiming the reasons an auditing firm opted to stop working with cryptocurrency? Ask them, it says in the tweet.
Later, CZ hinted that blockchains are transparent by default on Twitter, writing:
“Blockchains are permanent, public records. The most auditable ledger is this one.
The announcement follows Mazars’ confirmation on December 7 that Binance controlled 575,742 Bitcoin, valued at about $9.7 billion at the time of writing, belonging to its users. Since then, the report has also been taken down from Mazars’ website.
Certain financial experts immediately noticed some warning signs in Binance’s reserve report. An ex-member of the Financial Accounting Standards Board claimed that the Mazars study, which was just made public, lacks information on the effectiveness of internal controls and how Binance’s systems dispose of assets to pay off margin loans.
Mazars Group, known for its proof-of-reserve audit services for crypto companies, reportedly removed the audits from its site.