Audit firms suspend crypto reserve audits



Audit firms suspend crypto reserve audits

The bankruptcy of FTX revealed that centralized cryptocurrency exchanges need to be more transparent. So top crypto trading platforms have started working with auditors to assure users that their assets are safe. However, two of the leading auditors abruptly terminated their crypto auditing services, leaving the exchanges alone at a critical juncture.

The Mazars Veritas section, which is reserved for crypto audits on the official website of the French audit company Mazars Group, seems to be unavailable as of the translation publication time. The audit firm has previously worked with names like Binance, KuCoin, and Crypto.com.

There has been no official statement from Mazars yet. But Binanceannounced that the audit firm will temporarily take a break from working with crypto clients around the world.

Speaking to Cointelegraph, a Binance spokesperson stated that people are looking for more assurances that other exchanges will not crash following the FTX incident:

“The failure of FTX to ensure that its stock market assets exceed its debt obligations to customers has led to it defaulting on its debts. Naturally, people are looking for various ways to confirm that this will not happen again.”

The company announced that they have contacted other accounting firms, including the Big Four, and are also working on other technical solutions.

Another accounting firm, Armanino, has allegedly stopped its crypto audit services. The company has previously worked with names such as OKX, Gate.io and FTX.

Soruce : https://tr.cointelegraph.com/news/no-more-proof-of-reserve-checks-auditors-quietly-drop-crypto-projects-from-portfolios

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