Mazar suspends audit for crypto exchange Binance KuCoin and Crypto.com

Mazars Group, a French auditing firm has halted work for all crypto clients worldwide.

Crypto.com, KuCoin, and Binance Mazars have stated that they will halt all their activities with their crypto clients worldwide. Unfortunately, this implies that we will not be able to work with Mazars at this time.

The company’s crypto audits website is now unavailable. There has yet to be a formal announcement or justification for the service’s termination.

https://twitter.com/WuBlockchain/status/1603689768356675584

Reports state that the audits carried out by Mazars are based on a predetermined process (AUP). Some crypto companies, however, presented the papers as a comprehensive “audit,” which, if untrue, may have disastrous results.

A cryptocurrency trader named TreeOfAlpha states that: “While people will speculate as to the cause of this change, it is likely Mazars realized the backlash associated with doing shallow Proof of Reserves.

https://twitter.com/Tree_of_Alpha/status/1603686766568800256

Binance withdrew its proof of reserves from the auditor’s website

Mazars’ website removed the proof-of-reserve audits for cryptocurrency exchange Binance.

According to the company’s official website, Mazars Veritas, a division devoted to auditing cryptocurrency exchanges, has been completely stopped. The tool created by Mazars utilizes the Silver Sixpence Merkle Tree Generating. The tool to supplement proof-of-reserve reports to “bring trust and transparency to the digital asset market.”

The representative said Binance has also contacted several sizable auditing companies. The Big Four auditors, who are “hesitant to undertake a PoR for a private crypto company.” The company stated, “We will continue providing Merkle Tree PoR to our users to show that client assets exist on on-chain addresses under Binance’s control.

Changpeng “CZ” Zhao, CEO of Binance, immediately responded to the news on Twitter with a retweet from a random commenter. Claiming the reasons an auditing firm opted to stop working with cryptocurrency? Ask them, it says in the tweet.

https://twitter.com/sebxbt/status/1603692804256972801

Mazars releases KuCoin’s verification proof of reserves report

A report on KuCoin’s Proof-of-Reserves is published by the world’s top auditing firm Mazars and ascertains the total collateralization ratio of their asset holdings. Mazars confirmed KuCoin’s overall reserves and liabilities. The Mazars analysis found that KuCoin’s BTC, ETH, USDT, and USDC reserves were overcollateralized by 101%, 100%, 102%, and 101%, respectively overcollateralized.

Customers’ primary, trade, margin, robot, contract, high frequency trading, pool, risk, and trust accounts for BTC, ETH, USDT, and USDC held on the Bitcoin Ethereum, Tron, Algorand, EOS, Arbitrum, and KuCoin Community Chain are also included in the collateralization analysis assets. The proof-of-reserves website is introduced by KuCoin in the meantime, enabling users to validate their purchases on the Merkle Tree.

The chief executive officer of KuCoin, Johnny Lyu, expressed his thoughts on the subject, saying, “As people exchange, we respect our users’ faith in us and are devoted to doing everything in our ability to promote openness in the company. One of the ways we make sure we keep our promise to our users is through our partnership with Mazars. KuCoin will also keep looking at new methods to serve its users better.”

Crypto.com Releases Proof of Reserves

Data on proof-of-reserves from auditing company Mazars Group made public by Crypto.com.

It comes after competing exchange Binance on Wednesday produced a comparable report from the same auditor that seemed to prove its reserves. Like Binance, Mazars compared customer balances with assets stored in on-chain addresses on Crypto.com.

According to Francine McKenna, a lecturer in financial accounting at the Wharton School of the University of Pennsylvania. He states that it is a go with exercise based on information provided by the client about on-chain addresses of assets and a client database of customer balances rather than an official audit. Given that the same organization and partner created it as the Binance report, its minor to that document is not surprising.