Market Analysis Report (19 Dec 2022)

The auditing firm working with Binance, KuCoin, and other leading cryptocurrency exchanges on proof-of-reserves statements, Mazars, has paused all work for cryptocurrency clients. In a statement, the firm said it only paused its work for crypto firms relating to these reports.

According to the statement, Mazars halted proof-of-reserves reports due to “concerns regarding the way these reports are understood by the public.” The firm added that its proof-of-reserve reports “do not constitute either an assurance or an audit opinion on subject matter.”

Instead, Mazars added, they “report limited findings based on the agreed procedures performed on the subject matter at a historical point in time.”

The accounting firm performed a proof-of-reserves assessment of Binance earlier, finding its BTC reserves were overcollateralized. A link to the report on Mazars’ website no longer works.

Similarly, Mazars’ report on KuCoin’s BTC, ETH, USDT, and USDC reserves found they were all overcollateralized, but the link to the report is also no longer working.