Mazars, a multinational accounting company that has distinguished itself as one of the few to provide services to the cryptocurrency industry, has paused work in the digital asset market for customers like Binance, the exchange announced on Friday.
Mazars, which just prepared a “proof of reserves” report for the world’s largest crypto exchange the previous week, has temporarily suspended any work with the industry, according to Binance.
Mazars has stated that they will temporarily halt their work with all of its worldwide crypto customers, according to a Binance spokeswoman. Unfortunately, this means that Binance will be unable to collaborate with Mazars as well.
Mazars did not react quickly to a request for comment.
Experts were surprised by Mazar’s proof of reserves report, which said that Binance covered client Bitcoin liabilities with a 101% collateralization ratio. And then, Mazars’ report on Binance, which was housed on its website, appeared to be inaccessible Friday.
The analysis was not an audit, and Mazars declined to vouch for the firm, stating that it would not comment on Binance. Mazars has also created comparable reports for other cryptocurrency exchanges, such as Crypto.com.
As we remember, following the bankruptcy of FTX, previously one of the major digital asset trading platforms, the financial health of crypto exchanges has come under sharp attention. While FTX’s collapse happened amid widespread claims of financial fraud, it has highlighted a lack of transparency among exchanges as well as the important trust that clients have in these centralized exchanges.
However, Mazar’s report on Binance provided at least some acknowledgment from a legitimate company that Binance protects user payments. Later on, Binance stated that it has contacted the “big four” accounting firms of Deloitte, Ernst & Young, KPMG, and PricewaterhouseCoopers but that these companies are hesitant to perform an examination of the organization.