Binance hires audit firm that served Donald Trump to verify crypto reserves

Cryptocurrency speech Binance is moving with accounting steadfast Mazars arsenic portion of its proof-of-reserve (PoR) audits triggered by the autumn of FTX.

Mazars, the accounting steadfast that worked for erstwhile United States President Donald Trump’s company, was appointed arsenic an authoritative auditor to behaviour a “third enactment fiscal verification” arsenic portion of Binance’s PoR updates, The Wall Street Journal reported connected Nov. 30.

The accounting steadfast is reportedly already reviewing each Binance’s publically shared accusation connected Bitcoin (BTC) PoR and volition besides beryllium verifying aboriginal updates and tokens, a spokesperson for Binance reportedly said. “The archetypal verification update for BTC volition beryllium completed this week,” the typical added.

Mazars is an planetary accounting steadfast headquartered successful Paris. Its U.S. division, Mazars USA, was the longtime accounting steadfast for Trump and had been involved successful a contention with a House Oversight and Reform Committee's petition for immoderate of Trump’s fiscal records since 2019. The steadfast reportedly yet cut ties with Trump and his household successful 2022.

The quality comes amid Binance moving ample amounts of cryptocurrency arsenic portion of its PoR audits. On Nov. 28, Binance sent 127,351 BTC, oregon astir $2 billion, to an chartless wallet, with CEO Changpeng “CZ” Zhao subsequently announcing that the transaction was portion of the ongoing PoR process.

The enactment has triggered immoderate concerns successful the assemblage arsenic antecedently CZ argued that it’s atrocious quality erstwhile exchanges person to determination ample amounts of crypto to beryllium their wallet address.

As antecedently reported, Binance launched a PoR process and mechanics successful effect to the clang and bankruptcy of the FTX crypto exchange. On Nov. 25, the steadfast besides published Merkle Tree-backed impervious of funds for Bitcoin, which was conscionable 1 of galore Binance’s measures to beryllium its transparency.

Related: OKX releases proof-of-reserves page, on with instructions connected however to self-audit its reserves

Binance is not unsocial successful putting large efforts to support spot of its customers successful the aftermath of the FTX collapse, with galore different exchanges similar OKX and KuCoin rushing to release their PoR reports arsenic well. In the meantime, immoderate manufacture observers judge that the existing PoR process by exchanges is mostly useless, unless they besides supply liabilities, which are precise hard to fake.

Binance did not instantly respond to Cointelegraph’s petition for comment.