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Binance And Crypto.com Suspended By Mazars Group

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Global audit company Mazars has taken down the website hosting the proofs-of-reserves for cryptocurrency exchanges.

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The company has informed Bloomberg that it would suspend its cooperation with crypto companies regarding proofs-of-reserves report reports in the future.

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Mazars has appeared in the news about crypto over the last few weeks because it began issuing these reports on exchanges for cryptocurrency.

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The concept is that exchanges can provide reassurance to their users following the FTX fallout.

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Mazars also utilized Merkle trees to ensure that users could verify whether their crypto assets were part of the analysis simply by entering a hash.

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The audit firm's clients are Crypto.com as well as Kucoin. However, the most well-known client was Binance.

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Mazars verified this week that Binance was able to hold enough bitcoins as well as secured bitcoins that covered all user's balances on November 22nd at 23:59 UTC.

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However, the moment Binance and Mazars made public the proof-of-reserves data for the reserve of bitcoin on the exchange; Many were quick to remind that the document only covered a very small portion of Binance's business.

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It's an improvement in the correct direction; however, it's not much of a factor regarding Binance's handling of all cryptocurrency assets across its offerings.

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In the same way, it isn't easy to know if the user's assets are correctly separated from the company's balance sheet.

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