Binance: Big Four Refuse To Audit Reserves For Private Crypto Companies

Not only Mazars, but also 4 other large auditing firms are not ready for this job. Currently, the largest exchange in the market is still looking for a company that can take over this job. This once again made many investors worry that even the Binance could not get out of the FTX quagmire.

In a recent statement from the representative of the world’s largest cryptocurrency exchange by trading volume, Binance shared about the fact that 4 major auditing firms in the world Deloitte (DTT), Ernst & Young ( EY), KPMG (KPMG) and PricewaterhouseCoopers (PwC) were all unwilling to participate in the “proof of reserves” (PoR) report for the private crypto company.

However, it is known that Deloitte is currently working with Coinbase, which went public through direct listing in 2021, for its accounting and auditing services. Ernst & Young on Friday revealed a partnership with crypto tax and accounting technology provider TaxBit.

A spokesperson noted that Binance also faced a “withdrawal stress test” this week which recorded the completion of $6 billion in net withdrawals over a three-day period. that it goes smoothly “without interruption”.

As mentioned earlier, Mazars Group, which handled proof-of-reserves audits for exchanges KuCoin, Binance and Crypto.com, elected to stop providing the services because of “concerns regarding the way these reports are understood by the public” according to CNBC reports. 

Mazars published a report on Binance’s proof of reserves last week as various exchanges sought to ease investor concerns following the crash of FTX. The report appears to have since been removed from the sites of Binance and Mazars.

Additionally, a Binance spokesperson said the benefit of Proof of Reserve audited by an independent auditing firm is that it provides additional verification that the exchange’s assets are equal to or greater than the exchange’s liabilities to its customers.

After Mazars suspended its services to crypto customers, Binance contacted several major companies and is still looking for one willing to do the work.

Armanino, the auditing firm for crypto companies such as FTX US and Kraken, is also set to exit the crypto space, Forbes reported Thursday. 

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Foxy

Coincu News