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Mazars, the accounting firm that released evidence of the reserves 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 December 7 as it seeks to reassure customers of its reserves after FTX competitor breakdown Last month.
Binance, the world’s largest cryptocurrency exchange, is having difficulty finding an accounting firm to perform proof of reserves report. (Jakob Borzycki/NurPhoto via Getty Images/Getty Images)
According to the Wall Street Journal, Mazars removed the report from its site on Friday.
The accounting group said in a statement emailed to: Fox Business.
A Binance spokesperson said that Mazars “has indicated that they will be pausing work with all of their crypto clients globally, including Crypto.com, KuCoin, and Binance. Unfortunately, this means that we will not be able to work with Mazars at this time.”
“Ultimately, our users want to know that their funds are safe and that our business is financially sound,” the Binance statement continued. “To this end, Binance’s capital structure is debt-free, and over the past week, Binance has passed a stress test that should give the community extraordinary relief that their funds are safe. Despite the large number of withdrawals from December 12-14, the $6 billion in net withdrawals over three days, which we were able to achieve without breaking our stride.”
Rekt Tech Partner Robert Murry joins Cavuto: Coast to Coast to discuss his conversation with FTX’s Sam Bankman-Fried and the investigation into the FTX meltdown.
Binance said it has reached out to several major accounting firms, including the Big Four, looking for one willing to provide proof of the reserves report. The cryptocurrency exchange said the big four — Deloitte, Ernst & Young, KPMG and Pricewaterhouse Coopers — are all “currently unwilling to conduct a PoR for a private crypto company.”
The CEO of BINANCE tweeted, ‘business as usual’ after halting USDC cash withdrawals on Tuesday
The cryptocurrency industry has been affected by the fall of FTX, leaving investors very concerned after a run on the bank showed that the exchange – worth about $40 billion at one point – did not have enough reserves to honor withdrawals. The company declared bankruptcy last month, resulting in billions of dollars in losses for an estimated one million customers worldwide.
Founder of FTX Sam Bankman Fried His arrest on Monday on numerous charges related to his company’s collapse led to calls for more regulation of the crypto industry by jurisdictions around the world – including a requirement for proof of reserves.
Binance CEO Changpeng Zhao speaks at the Delta Summit, Malta’s official blockchain and digital innovation event to promote cryptocurrency, in St. Julian’s, Malta, on October 4, 2018. (Reuters/Darren Zmmit Luby/Reuters Photo)
Changpeng “CZ” Zhao, founder and CEO of Binance, told CNBC’s “Squawk Box” this week that “well-managed cryptocurrency exchanges should hold users’ assets one-to-one.”
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“People can withdraw 100% of the assets they hold on Binance,” Zhao said. “We won’t have a problem, on any given day.”
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