Accounting firm Mazars Group has suspended all work with its crypto clients, according to its former client and the world’s largest crypto exchange, Binance. The decision to cut ties with Binance, KuCoin and Crypto.com comes just after the global accounting firm released “proof of reserve” reports for several digital asset exchanges.
A spokesperson from Binance told CNBC in a statement that, “Mazars has indicated that they will temporarily pause their work with all of their crypto clients globally, which include Crypto.com, KuCoin, and Binance.”
“Unfortunately, this means that we will not be able to work with Mazars for the moment,” Binance said.
Mazars Group did not immediately respond to a request for comment.
Both bitcoin and Binance’s BNB token took a dip on the news, with bitcoin initially dropping nearly 3% and Binance’s native token falling nearly 5.5%.
On Dec. 9, Crypto.com published a proof of reserves audited by Mazars, attesting that customer assets were held on a one-to-one basis, meaning that all deposits were 100% backed by Crypto.com’s reserves. A spokesperson for the exchange reiterated that the firm had “successfully” completed its recent proof of reserves in collaboration with Mazars and that the accounting company had “provided independent verification of our secure on-chain digital assets matching our customer balances 1:1.”
Crypto.com added that customers can verify their balance using its site. A spokesperson said the company will “continue to engage with reputable audit firms in 2023 and beyond” as they “seek to increase transparency across the entire industry.”
KuCoin said its proof of reserve report was already delivered by Mazars. “In the future, we are open to work with any leading and reputable audit to provide the third-party verification report,” a KuoCoin spokesperson said.
This story is developing. Please check back for updates.
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