Mazar says users' BTC reserves on Binance are fully collateralized

According to a caller papers published connected Dec. 7, South-African auditor Mazars confirmed that cryptocurrency speech Binance possessed power implicit 575,742.42 of customers' Bitcoins (BTC) worthy $9.7 cardinal astatine the clip of publication. Through the process, Mazars stated that "Binance was 101% collateralized."

The scope of the enquiry included customers' spot, options, margin, futures, funding, loan, and gain accounts for Bitcoin and wrapped Bitcoin (WBTC). Aside from the Bitcoin network, BTC wrapped connected Ethereum, BNB Chain, and Binance Smart Chain were besides included successful the inquiry.

As portion of its proof-of-reserves pledge, Binance requested an agreed-upon-procedures (AUP), oregon an audit that is constricted successful scale, arsenic of Nov. 22. Commenting connected the results, Mazars wrote that:

"We marque nary practice regarding the appropriateness of the AUP. This AUP engagement is not an assurance engagement. Accordingly, we bash not explicit an sentiment oregon an assurance conclusion. Had we performed further procedures, different matters mightiness person travel to our attraction that would person been reported."

As disclosed successful its procedures, Mazars independently obtained the nominal worth of Binance customers' assets by investigating a assortment of wallet addresses controlled by the exchange. Auditors asked Binance to transportation assets to designated addresses and backmost successful bid to verify impervious of ownership. In addition, the steadfast utilized its bundle to aggregate lawsuit information it obtained and computed the Merkle Root Hash. This allowed Binance's clients to verify their Merkle Leaf independently and cryptographically arsenic being portion of the Merkle Root.

"We person complied with the applicable ethical requirements. For the intent of this engagement, determination are nary independency requirements with which we are required to comply"