Binance’s reserve auditor Mazars suddenly stops crypto audits

Mazars, the popular audit and accounting company used by Binance and other leading cryptocurrency companies for their proof-of-reverse assessment, has temporarily paused its crypto auditing services. Bloomberg reported the development today, revealing that previous audit reports are currently inaccessible. 

Mazars stops crypto audits 

During press time, the webpage dedicated to Mazars’ cryptocurrency auditing service appears to have been shut down. Mazars has not issued any statement concerning the service closure, but a spokesperson for Binance confirmed that the company has paused its crypto auditing service.

“Mazars has indicated that they will temporarily pause their work with all of their crypto clients globally, which include Crypto.com, KuCoin, and Binance,” according to Binance’s spokesperson. “Unfortunately, this means that we will not be able to work with Mazars for the moment.”

Binance, KuCoin, Crypto.com, and several other crypto companies worked with Mazars to provide audit reports on their reserves in November, following the collapse of Sam Bankman-Fried crypto exchange, FTX. For some companies, like Binance and KuCoin, the auditor reported that some of their assets were overcollateralized. 

Crypto Twitter was startled by the development today. Mazars’ hasn’t disclosed any reason for the abrupt suspension of the crypto auditing service. However, several people speculate there could be trouble brewing. Others believe the service closure could be a result of regulatory pressures.

While people will speculate about the reason for this change, it is likely Mazars realized the backlash associated with doing shallow Proof of Reserves for Crypto companies is far worse than what they could gain from it.

Associating your business with Crypto is always dangerous. https://t.co/Dk3IWqScF4

— Tree of Alpha (@Tree_of_Alpha) December 16, 2022

Nansen: Binance holds over $56 billion

According to Nansen’s data, Binance currently holds more than $56 billion in assets. It remains unknown whether the attestation provided by Mazars in November is still relevant, given the abrupt suspension of the crypto audit service today. However, the report is still accessible on the Binance website.

In light of the development today, Binance’s CEO Changpeng Zhao tweeted that users can also believe the records on the blockchain. He said “blockchains are public, permanent records. It’s the most auditable ledger.”