After the Paris-based auditing company Mazars stopped its activities in the crypto money sector, including Binance, detailed explanations came about the reasons for this decision.
Among its customers Binance, Kucoin and Crypto.com audit firm with leading stock exchanges such as mazarsyesterday, the stock market including proof of reserve announced that it has suspended all its services in the crypto money sector.
New explanations came from the Mazars team regarding the rationale for this decision. In a statement to CNBC, Mazars pointed out that the data consists of limited findings and there are problems with public perception:
Due to concerns about the way these reports are publicly understood, we have discontinued the provision of Proof of Reserve reports for entities in the cryptocurrency industry.
He also removed Trump from among his customers.
In February 2022, Mazars also removed former US President Donald Trump’s company, The Trump Organization, from being a client, citing the lack of reliability in its financial statements. Mazars submitted the report of its reserves to Binance last week, but many speculations cast a shadow over this report.
Financial Accounting Standards Board (FASB) a former member of the audit firm Mazars’ report on the quality of internal controls and the margin credits of Binance’s systems. lacks information on how he liquidated assets stated that the report was to investors does not give confidence about the financial situation of the stock market he had said.
Binance CEO: We started talks with different companies
Binance CEO Changpeng Zhao (CZ) said in a recent interview with CNBC that they have started meeting with different audit firms, but did not reveal details about the firms.
Interestingly, many audit firms are a bit afraid of working with crypto businesses.
Referring to the FTX incident, CZ said, “regulators don’t know how to audit cryptocurrency companies” said.
There were several audit firms that audited FTX, and they were in a bad position for giving reserve approval. They don’t know how to audit user entities, different blockchains.