Mazars, a global audit, accounting and consulting group, was hired by Binance. We tell you why!
Crypto exchange Binance has appointed accounting giant Mazars to verify its cryptocurrency reserves. Since the collapse of FTX caused a greater demand for transparency from exchanges.
Either way, while the FTX crash forced exchanges to be more transparent to their users, Binance took a big step in this regard. In fact, the firm would already be reviewing all the information publicly shared by Binance about Bitcoin. Also, it will check for future updates and tokens.
What’s more, this is all part of Binance’s security sampling process. After sending 127,351 BTC to a wallet on November 28. To which CEO Changpeng Zhao subsequently announced that the transaction was part of the ongoing PoR process.
Interestingly, Changpeng Zhao had argued that it is bad news when exchanges have to move large amounts of cryptocurrency.
Binance hires an external auditor
As indicated, as part of its proof of reserve (PoR) audits, Binance hired Mazars, a Paris-based accounting firm that also worked for Donald Trump. And that it employs more than 44,000 professionals in more than 90 countries through member firms.
Specifically, according to reports from the Wall Street Journal, said company was appointed as the official auditor to perform third-party financial verification. All of this, as part of Binance’s trial reserve updates.
Binance appointed accounting giant Mazars to verify its token reserves, as the meltdown of its former rival FTX triggered increased demand for transparency from crypto exchanges https://t.co/Jvget0vBew— Bloomberg (@business) November 30, 2022
Incidentally, a Binance spokesperson confirmed the news of the allocation: “We will work with Mazars to perform third-party financial verification as part of the Proof of Reserves updates.”
In another statement he said: “Mazars is reviewing all the information we have shared publicly about Proof of Reserves to date and will also check future updates and tokens. The first verification update for BTC will be completed this week.”
By way of closing, in this way Binance wants to reassure investors, showing that not all companies in the ecosystem are bad. Particularly, trying to prove that it does have its accounts right and that it will not affect its millions of users in the world.
I retire with this phrase from Juan Calderón: “Companies that do not adapt to the paradigm shift will not be able to be competitive.”