Binance is working with accounting firm Mazars as part of its proof-of-reserve (PoR) audits triggered by the fall of FTX.
The Wall Street Journal reported on Nov. 30 that Mazars, the accounting firm that worked for the business of former US President Donald Trump, had been chosen as the official auditor to carry out a “third party financial verification” as part of Binance’s PoR upgrades. All of the information on Bitcoin (BTC $16,926) released publicly by Binance is apparently already being examined by the accounting company.
PoR and will also be validating further updates and coins, according to a representative for Binance. The representative continued, “The first BTC verification upgrade will be finished this week.”
An worldwide accounting firm with its main office in Paris is called Mazars. Trump’s longtime accounting firm in the United States, Mazars USA, has been embroiled in controversy since 2019 over a request for some of his financial records from the House Oversight and Reform Committee.
According to reports, the company severed relations with Trump and his family in 2022.The announcement coincides with Binance’s recent large-scale cryptocurrency transfers for its PoR audits.
On Nov. 28, Binance sent 127,351 BTC, or roughly $2 billion, to an unidentified wallet. Following the transaction, CEO Changpeng “CZ” Zhao revealed that it was a part of the ongoing PoR process.
Since CZ previously argued that it’s bad news when exchanges have to move significant amounts of cryptocurrency to prove their wallet address, the action has raised some questions in the community.
In response to the failure and bankruptcy of the FTX cryptocurrency exchange, Binance introduced a PoR process and mechanism, as was previously reported. One of many steps taken by Binance to demonstrate its transparency was the publication on November 25 of Merkle Tree-backed proof of funds for Bitcoin.
In the wake of the FTX collapse, many other exchanges, such as OKX and KuCoin, have been working extremely hard to keep their customers’ trust. Binance is not alone in this effort. Meanwhile, some industry watchers think that the exchanges’ current PoR process is largely ineffective unless they also provide liabilities, which are very difficult to forge.