Monday, July 22, 2024

Binance and Publish Proof-of-Reserve Audits Conducted by Global Auditor Mazars Group

This week two cryptocurrency exchanges provided proof-of-reserves in order to highlight that the trading platforms are backing customer assets 1:1. Binance published its report on Dec. 7, 2022, and detailed the global auditor Mazars Group conducted the audit. On Dec. 9, 2022, the exchange published proof-of-reserves records and the verification was also conducted by Mazars.

Binance and Reveal POR Audits

Two very large crypto exchanges provided proof-of-reserves (POR) documentation this week following the promises made by exchange executives after the FTX fiasco. The world’s largest crypto exchange, in terms of trade volume, Binance, revealed a comprehensive look at assets like BTC, BTCB, and BBTC hosted on Mazars Group’s website that shows assets held on Bitcoin, Ethereum, BNB, and Binance Smart Chain networks.

The audit by Mazars took place on Nov. 22, 2022, at Bitcoin block height 764,327, and the report claims assets are backed 101% by collateralized reserves. “At the time of assessment, Mazars observed Binance controlled in-scope assets in excess of 100% of their total platform liabilities,” the Mazars report asserts. “The collateralization ratio takes into account in-scope-assets lent through the margin and loans service offering which are collateralized by out-of-scope assets. The Merkle Root was compiled by hashing all client accounts into a single output,” the Mazars audit adds.

Mazars’ audit on Binance further notes that “total liabilities” was accounted for in the attestation. At the end of Nov. 2022, after Binance provided POR addresses, Kraken’s Jesse Powell criticized the proof and said that the “statement of assets is pointless without liabilities.” Powell has shared his two cents about the latest audit from Binance as well and lambasted the Binance POR again on Dec. 8.

Following Binance releasing its POR audit reviewed by Mazars Group, the crypto trading platform published a press release announcement about its POR audit which was also conducted by Mazars. “Mazars Group compared the assets held in [onchain] addresses proven to be controlled by with customer balances through an auditor-overseen live query of a production database as of December 7, 2022, 00:00:00 UTC,” the company said. detailed that existing customers can verify their assets on the platform. The full audit conducted by Mazars can be found here. “Our report is solely for the purposes of offering’s customers additional transparency and reassurance that their in-scope assets are fully reserved, exist on the blockchain(s), and are under the control of at the below mentioned reporting date,” the Mazars audit details.

Tags in this story
1:1, Assets, audit, bBTC, Bitcoin (BTC), BTC, BTCB, collateralization ratio, Crypto, crypto assets,, Ethereum (ETH), exchange POR, Exchanges, Jesse Powell, Kraken Exec, Mazars, Mazars Group, PoR, POR audit, Proof of Reserves, total liabilities, Transparency

What do you think about Binance and releasing POR and audits conducted by Mazars Group? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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