CryptoQuant Confirms Binance Reserves Audit Results

The CryptoQuant analytical platform analyzed the Mazars auditors report on the reserves of the Binance cryptocurrency exchange and confirmed its relevance.

In early December, Binance partnered with Mazars to independently audit the new Proof-of-Reserve (PoR) reporting system. The auditor checked all publicly available information about the stock of bitcoins of the crypto exchange and confirmed the November data of Binance about more than 100% of the ratio of the exchange’s reserves in bitcoins to clients’ assets.

Against the background of market events accompanying the collapse of the FTX cryptocurrency platform, the report of the Mazars auditing company on the reserves of Binance was perceived by the participants of the crypto community ambiguously.

According to John Reed Stark, former head of the SEC’s Office of Internet Enforcement, the report only provides quantitative data, does not reflect the effectiveness of Binance’s internal financial controls, and lacks an audit opinion that the evidence obtained is “sufficient and appropriate.” “.

A number of crypto skeptics questioned the qualifications of Mazars employees and questioned why such a “complex and highly capitalized company like Binance” chose Mazars over one of the respected Big Four accounting firms.

Countering critics, blockchain analytics provider CryptoQuant echoed audit firm Mazars’ findings, saying the commitments reported by Binance are very close to its estimate of 99%. CryptoQuant clarified that Binance’s ETH and stablecoin reserves “do not currently exhibit FTX-like behavior.”

Earlier, Nansen analysts reported that about $3 billion has been withdrawn from Binance over the past few days. User activity is associated with investor uncertainty about the bankruptcy of FTX and Binance’s “temporary suspension” of withdrawing funds in USDC stablecoins.