Recently, accounting firm Mazars Group has decided to cease all agreements with its cryptocurrency clients. It intends to rid itself of all connections with platforms like Binance, KuCoin, and crypto.com.
"Mazars has indicated that they will temporarily pause their work with all of their crypto clients globally, which include Crypto.com, KuCoin and Binance. Unfortunately, this means that we will not be able to work with Mazars for the moment," a Binance spokesperson said in a statement.
Via email message, Mazars said that it has put a hold only on crypto companies that contain proof-of-reserves reports. According to Mazars, they "do not constitute either an assurance or an audit opinion on subject matter. Instead they report limited findings based on the agreed procedures performed on the subject matter at a historical point in time."
According to Mazars, making collaborations with cryptocurrency firms just isn't worth the effort. As soon as this fact was made known, Binance coin fell by approximately 5% in a one-day time period, as reported through CoinDesk data.
KuCoin revealed, however, that its proof-of-reserve report has already been administered by Mazars. According to a KuCoin spokesperson, "In the future, we are open to work with any leading and reputable audit to provide the third-party verification report."
In addition, Zhao, CEO of Binance, revealed in an interview this past Thursday that Binance will be working alongside various auditing firms. But he didn't give details regarding which specific ones. But, according to Zhao, "audits don't reveal every problem."
"There are a few audit firms that audited FTX and they got burned because they give the stamp of approval, and I don't know how they did the audits. But audits don't reveal every problem," said Zhao in a statement.
It seems that it takes time to establish trust and stability, and that auditing reports showed up much faster than was originally anticipated. Auditors also discovered that KuCoin's BTC, ETH, USDC reserves were "overcollateralized", according to CoinDesk.