Four other sizable auditing companies in addition to Mazars are not prepared for this work. The biggest market exchange is still hunting for a business that can take over this position. This caused many investors to worry once more that not even Binance will be able to escape the FTX mess.
According to a recent statement made by a representative of Binance, the largest cryptocurrency exchange in the world by trading volume, four of the world's top auditing firms, Deloitte, Ernst & Young, Ernst & Young, KPMG, and PricewaterhouseCoopers, all declined to take part in the "proof of reserves" (PoR) report for the private cryptocurrency company.
It is known that Deloitte is presently providing accounting and auditing services to Coinbase, which went public through direct listing in 2021. On Friday, Ernst & Young disclosed a collaboration with cryptocurrency tax and accounting technology firm TaxBit.
A spokeswoman said that this week, Binance underwent a "withdrawal stress test" that involved $6 billion in net withdrawals over three days. that everything proceeds "without hiccup."
As previously indicated, Mazars Group decided to discontinue offering the services due to "concerns surrounding the way these reports are received by the public," according to CNBC reports. Mazars Group provided proof-of-reserves audits for exchanges KuCoin, Binance, and Crypto.com.
Last week, Mazars released a study on Binance's proof of reserves as different exchanges worked to allay investor fears following the FTX crisis. The study appears to have been taken down from the Binance and Mazars websites after that time.
As part of #Binance’s user fund transparency work and Proof of Reserves updates, we're working with digital assets experts at global financial audit, tax and advisory firm, @Mazars_SA.
— Binance (@binance) December 7, 2022
The first report from Mazars about Binance’s $BTC Proof of Reserves has been published today.
The advantage of having Proof of Reserve audited by an independent auditing company, according to a spokeswoman for Binance, is that it offers extra assurance that the exchange's assets are equivalent to or greater than the exchange's liabilities to its clients.
Binance contacted a number of big businesses after Mazars stopped providing services to cryptocurrency users and is still looking for one ready to take on the task.
Armanino, the auditing firm for cryptocurrency businesses including FTX US and Kraken, is also planning to leave the industry, according to a Forbes report published on Thursday.
