BNB Plummets as Binance Auditor Mazars Halts Work With All Crypto Firms

Andrew Asmakov
Andrew Asmakov December 16, 2022
Updated 2022/12/16 at 1:45 PM
2 Min Read

Auditing firm Mazars Group has dropped cryptocurrency firms as clients, according to crypto exchange Binance.

In a statement with Bloomberg, Binance said that “Mazars has indicated that they will temporarily pause their work with all of their crypto clients globally, which include Crypto.com, KuCoin, and Binance.”

“Unfortunately, this means that we will not be able to work with Mazars for the moment,” a Binance spokesperson said, adding that the exchange is looking to “embrace additional transparency, exploring the best ways to share those details “in the coming months.”

Binance Coin (BNB), the native token of the exchange, responded to the news with a 5.2% drop on Friday, currently trading around $251, according to CoinGecko.

Binance, KuCoin, and Crypto.com didn’t immediately respond to Decrypt‘s request for comment.

Mazars’ reports pulled off

Last week, Mazars published a proof-of-reserves assessment of Binance, reporting a 101% collateralization ratio for 575,742 Bitcoin in net customer deposits as of November 22. The link to the report on the French firm’s website, however, is no longer working at press time.

Mazars also performed a proof-of-reserves assessment of Kucoin and Crypto.com exchanges, finding that BTC, ETH, USDT, and USDC reserves at Kucoin were overcollateralized as well, while Crypto.com had a 1:1 backing of its reserves.

Both reports have been pulled off the firm’s website as well.

Mazars did not immediately respond to Decrypt’s request for additional comment.

The financial health of crypto exchanges came under scrutiny following the collapse of FTX in November, with many trading platforms moving to conduct proof of reserves reports for the likes of Binance and other large exchanges.

Binance’s proof of reserves report has faced hefty criticism, as it was not a full or official audit. It also referred to a snapshot of the exchange’s assets at a certain point of time and did not disclose its liabilities.

 

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This article was first published on Decrypt.co
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