Major PoR Auditor, Mazars, Temporarily Halts All Crypto Work

Time | Emily Nicolle | Dec 16, 2022

Mazars - Major PoR Auditor, Mazars, Temporarily Halts All Crypto Work

Mazars Group, the accounting firm used by crypto giant Binance Holdings Ltd. and other big players in the to vouch for their assets held in reserve, has halted all work for crypto clients, dealing a major blow to an industry seeking to shore up confidence in the wake of FTX’s collapse.

  • The French firm [temporarily] suspended work for cryptocurrency firms because of indications that markets haven’t been reassured by the “proof-of-reserves” reports it had published so far, according to an email from the firm seen by Bloomberg News.
    • The firm was also concerned about intense media scrutiny, the email said.
    • Paris-headquartered Mazars has been at the forefront of the crypto industry’s rush to conduct proof-of-reserves reports for the likes of Binance and other large exchanges, including Crypto.com and Kucoin.
    • Proof-of-reserves reports have faced scrutiny as they are not comparable to a full audit, in that they only show a firm’s assets, not its liabilites, and instead serve as snapshots in time that say information provided by clients broadly checks out.

See:  Is Binance’s Proof-of-Reserves Pointless Without Liabilities?

  • Binance spokesperson:  “Mazars has indicated that they will temporarily pause their work with all of their crypto clients globally.  Unfortunately, this means that we will not be able to work with Mazars for the moment."
  • Critics have pointed out that, while it may be challenging, it is not impossible for cryptocurrency companies to secure full audits.
    • Coinbase, the US-based publicly-listed exchange, works with Deloitte for its annual audited statements.

Simon Taylor, head of strategy and content at crypto startup Sardine:

“It is unclear how far the solvency contagion could run, and proof of reserves is not the same as proof of solvency.  The issue with FTX was that while it had reserves, those reserves were massively over valued relative to their risk in a bank run scenario.”

Continue to the full article --> here


NCFA Jan 2018 resize - Major PoR Auditor, Mazars, Temporarily Halts All Crypto WorkThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Major PoR Auditor, Mazars, Temporarily Halts All Crypto WorkFF Logo 400 v3 - Major PoR Auditor, Mazars, Temporarily Halts All Crypto Workcommunity social impact - Major PoR Auditor, Mazars, Temporarily Halts All Crypto Work

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - Major PoR Auditor, Mazars, Temporarily Halts All Crypto Work




 

Leave a Reply

Your email address will not be published. Required fields are marked *

19 + 20 =