No more proof-of-reserve checks? Auditors quietly drop crypto projects from portfolios

As the FTX illness highlighted the request for much transparency from centralized crypto exchanges, moving with auditors has been the determination by apical crypto trading platforms to guarantee users that their assets are fine. However, 2 of the astir salient auditors person abruptly dropped their crypto auditing services, leaving exchanges hanging astatine a precise important time. 

At the moment, the authoritative website of the French auditing steadfast Mazars Group shows that its section, called Mazars Veritas, which is dedicated to crypto audits is present offline. The steadfast worked with respective of the astir salient crypto exchanges including Binance, KuCoin and Crypto.com.

While there’s been nary authoritative announcement from Mazars astatine the clip of writing, Binance confirmed that the auditing steadfast has indicated that it’s temporarily pausing its enactment with each its crypto clients globally.

Speaking to Cointelegraph, a spokesperson from Binance noted that owed to the FTX incident, radical person been searching for much assurances that different exchanges won’t collapse. They explained that:

“It was FTX’s nonaccomplishment to guarantee speech assets were greater than its liabilities to customers that caused its insolvency. So, naturally, radical privation aggregate ways of verifying this won’t hap again.”

The steadfast said that astatine the moment, they person reached retired to different accounting firms, including the Big Four and volition enactment to supply different method solutions.

Related: Silvergate faces class-action suit implicit FTX and Alameda dealings

Meanwhile, accounting steadfast Armanino has besides reportedly ended its crypto auditing services. The steadfast has worked with respective crypto trading platforms similar OKX, Gate.io and the embattled FTX exchange. Citing anonymous sources, media outlet Forbes reported that the steadfast whitethorn beryllium facing unit from its non-crypto clients aft being named successful a class-action suit for being incapable to spot problems successful FTX. 

The accounting steadfast began its crypto auditing services successful 2014, offering services similar proof-of-reserve audits and stablecoin attestations, services that are presently successful precocious request arsenic the FTX illness pushed users to go much wary of centralized crypto trading platforms.