Accounting Firm That Issued Proof of Booking Report for Binance Suspends Service for All Crypto Clients

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Mazars, the accounting firm that issued a proof of reservations report published by cryptocurrency giant Binance last week, has pulled the report from its website and is no longer offering the service to its crypto clients.

Binance, the world’s largest cryptocurrency exchange, tweeted a link to the report on Dec. 7 as it seeks to reassure customers about their reserves following the collapse of competitor FTX last month.

binance

Binance, the world’s largest cryptocurrency exchange, is having difficulty finding an accounting firm to perform a proof of reservations report. (Jakub Porzycki/NurPhoto via Getty Images/Getty Images)

According to The Wall Street Journal, Mazars deleted the report from its website on Friday.

“Mazars has ceased its activity related to providing proof of reserves reports to entities in the cryptocurrency industry due to concerns about how these reports are understood by the public,” the accounting group said in an emailed statement to FOX. Business.

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A Binance spokesperson said that Mazars “has indicated that it will temporarily stop working with all of its crypto clients worldwide, which include Crypto.com, KuCoin and Binance. Unfortunately, this means that we will not be able to work with Mazars on time .”

“Ultimately, our users want to know that their funds are safe and that our business is financially strong,” Binance’s statement continued. “To that end, Binance’s capital structure is debt-free, and last week Binance passed a stress test that should give the community extraordinary comfort that their funds are safe. From December 12th to December 14th, $6 billion net withdrawals in three days, we were able to fulfill them without missing a beat.”

Binance said it reached out to several major accounting firms, including the Big Four, looking for one willing to perform a proof of reservations report. The cryptocurrency exchange said the Big Four — which are Deloitte, Ernst & Young, KPMG and Pricewaterhouse Coopers — are “currently unwilling to conduct a PoR for a private cryptocurrency company.”

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The crypto industry was rocked by the FTX crash, leaving investors with major jitters after a run on the bank showed the exchange — worth around $40 billion at one point — did not have enough reserves to honor withdrawals. The company filed for bankruptcy last month, resulting in billions of dollars in losses for about a million customers worldwide.

FTX founder Sam Bankman-Fried was arrested on Monday on multiple charges related to his company’s collapse, which led to calls for greater regulations for the cryptocurrency industry by jurisdictions around the world – including requiring proof of reservations.

Changpeng Zhao, CEO of Binance

Binance CEO Changpeng Zhao speaks at the Delta Summit, Malta’s official blockchain and digital innovation event that promotes cryptocurrencies, in St Julian’s, Malta, Oct. (REUTERS/Darrin Zammit Lupi/Reuters Photos)

Binance Founder and CEO Changpeng “CZ” Zhao told CNBC’s “Squawk Box” this week that “well-managed crypto exchanges must hold users’ assets one by one.”

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“People can withdraw 100% of the assets they own on Binance,” Zhao said. “We won’t have a problem, on any given day.”

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