Accounting firm Mazars Group has suspended all work with its crypto clients, according to its former client and the world’s largest crypto exchange Binance. The decision to cut ties with Binance, KuCoin and Crypto.com comes just after the global accounting firm published “proof of reserve” reports for several digital asset exchanges.

A spokesperson for Binance told CNBC in a statement that “Mazars has indicated that it will temporarily suspend operations with all of its crypto clients worldwide, including Crypto.com, KuCoin and Binance.”

“Unfortunately, this means that we will not be able to work with Mazars at this time,” Binance said.

Mazars Group did not immediately respond to a request for comment.

Both bitcoin and Binance’s BNB token fell on the news, with Bitcoin initially down nearly 3% and Binance’s native token down nearly 5.5%.

On December 9, Crypto.com published evidence of reserves verified by Mazars, which confirmed that client assets were held on an individual basis, meaning that all deposits were 100% backed by Crypto.com’s reserves. A spokesman for the exchange reiterated that the firm had “successfully” completed a recent proof of reserves in collaboration with Mazars and that the accounting firm had “provided an independent verification of our secure digital assets on-chain that match our clients’ 1:1 balances”.

Crypto.com added that customers can check their balance on its website. A spokesperson said the company will “continue to engage with reputable audit firms in 2023 and beyond” as they “seek to improve transparency across the industry”.

KuCoin said that Mazars has already submitted its report on the availability of reserves. “In the future, we are willing to cooperate with any leading and reputable auditor to provide a third-party verification report,” said a KuoCoin representative.

This story is evolving. Check for updates.

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