Big 4 Accounting Firms Won’t Touch Binance PoR

The largest cryptocurrency exchange by trading volume, Binance, claims that the top auditing firms including Deloitte, Ernst & Young, KPMG, and PricewaterhouseCoopers are “currently unwilling” to do a proof-of-reserves audit for a private exchange.

However, the Big Four organisations haven’t yet stopped serving bitcoin clients, including Deloitte’s Coinbase.

A Binance spokesman informed Blockworks, “We have reached out to multiple large firms…and we are still looking for a firm who will do so.” 

Arca’s chief investment officer, Jeff Dorman, says that auditors are also constantly learning to keep up with the industry, as the lack of skilled auditors has become a major problem in the cryptocurrency industry. 

Dorman said “auditors do not like to take risks,” citing Arthur Anderson and Enron. He added:  “The auditors are still learning themselves. It’s one thing to prove you have assets in the wallet; it’s quite another LONG ordeal to prove you have access to all of them.”

The executive advised against leaving too many assets on Binance and said, “speaking of audits, it is possible to believe Binance is a good company, & still trade there, but not be 100% certain.”  

Binance’s Partnership with Mazars Ended

The news comes after the accountancy firm Mazars Group said on Friday that it would no longer be accepting any new bitcoin clients. Mazars stopped doing business with KuCoin, Binance, Crypto.com, and others. 

Accounting company Mazars also conducted the renowned crypto exchange Binance and publicised that the exchange’s Bitcoin (BTC) reserve is 101% backed, suggesting that it is over-collateralized. 

However, commenting on the ending of the partnership with the audit firm, Binance said, “unfortunately, this means that we will not be able to work with Mazars for the moment.”

Armanino, another auditing agency for FTX US and Kraken, has declared its exit from the cryptocurrency industry. Armanino was apparently listed in a class-action lawsuit last month for FTX.US violations.