Crypto firm, Binance, will be working with Mazars, an accounting firm, to audit its PoR (proof-of-reserve). Wall Street Journal reported the news in a post on November 30th, saying:
“Binance has appointed Mazars accounting firm to conduct a 3rd party verification on its PoR.” Meanwhile, Mazars has worked with several big names in the world. Among them is Donald Trump, former President of the United States.
Mazars worked as an auditor for the ex-president’s company. According to reports, the accounting firm is reviewing Binance’s Bitcoin PoR, which it shared publicly lately.
In addition, a Binance spokesperson confirmed that the Paris-headquartered company would verify Binance tokens and future updates. Furthermore, the representative noted that the company would complete the first Bitcoin verification this week.
Further, Mazars is a global accounting company with its headquarters in Paris. The company’s US office, Mazars USA, served as an accounting firm for Donald Trump.
Also, it had a controversy with a government committee concerning Trump’s financial records. However, the firm has since stopped serving the US ex-president in 2022.
This announcement comes as Binance moves massive sums of money as it conducts its PoR audits. On November 28th, Binance transferred 127,351 Bitcoins, equivalent to around $2 billion, to an anonymous wallet.
Subsequently, the CEO of Binance, Changpeng Zhao, announced that the transaction was a part of the platform’s ongoing PoR process.
Binance Introduces PoR
Meanwhile, the BTC transfer caused panic within the crypto community despite the response from Zhao. At the beginning of November, Zhao argued that it is not ideal for cryptocurrency exchanges to move significant sums of cryptocurrency to verify their wallet address.
Hence, Binance’s BTC transfer caused mixed reactions in the crypto community. Many supported feared something was secretly going on.
According to previous reports, Binance introduced the PoR initiative following the recent happenings in the crypto space. Recently, the crypto exchange FTX went bankrupt after mishandling users’ assets.
Binance’s CEO introduced the PoR system to help companies remain transparent. On November 25th, the exchange released its Merkle Tree-backed PoR for Bitcoin.
This was part of the company’s goal to prove it is transparent and assure users that their funds are safe. Following the failure of FTX, several other exchanges, including KuCoin and OKX, are scrambling to publish their PoR reports.
Moreover, Binance is one of many exchanges making significant steps to win back the faith of its users. Meanwhile, several industry experts, including the outgoing CEO of Kraken, argue that the present PoR procedure carried out by exchanges is pointless.
According to them, it would only make sense if the exchanges additionally offered liabilities, which are extremely difficult to forge.
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