- Binance uses accounting firm Mazars to verify its cryptocurrency reserves.
- Mazars’ US unit previously worked for former President Donald Trump and his company.
- Earlier this year, Mazars USA said it no longer met 10 years of financial statements for Trump.
Binance is enlisting the services of accounting firm Mazars, which previously worked for former President Donald Trump, according to the Wall Street Journal.
Mazars will verify Binance’s crypto reserves, according to the report, as part of the exchange’s broader proof-of-reserves system to foster more transparency. Binance and Mazars did not immediately respond to Insider’s request for comment.
Binance confirmed the news to Bloomberg, saying “it is working with Mazars to perform third-party financial verification as part of proof of reserves updates.”
“Mazars is reviewing all of the information we have shared publicly on proof of reserves (BTC) to date and will also verify future updates and tokens,” Binance told Bloomberg. “The first verification update for BTC will be completed this week.”
In a disclosure related to the New York Attorney General’s investigation of Trump, Mazars’ US unit earlier this year withdrew from working with former President Trump’s company and said that she could not accept the financial statements she prepared for Trump between 2011 and 2020, citing documents filed by the New York AG, her own investigation and other information he received.
“We are writing to advise you that Donald J. Trump’s Statements of Financial Disposition for the years ending June 30, 2011 through June 30, 2020 should no longer be relied upon and you should advise all recipients who currently rely on one or more of these documents that these documents should not be relied upon,” Mazars said in a Feb. 9 letter to the Trump Organization’s chief legal officer.
Meanwhile, crypto firms and exchanges are facing fresh waves of scrutiny in response to FTX’s meltdown, which began with a liquidity crunch when Binance CEO Changpeng Zhao said that it would sell FTX’s native FTT token.
Companies and stock exchanges often employ external auditors to verify reserves, although the process only provides a point-in-time snapshot of a company’s financial health which does not always include a full balance sheet or listing. full of liabilities.
Still, Binance touted its transparency efforts and released its first reserve snapshot on November 25, which showed holdings mostly in bitcoins. The company said it plans to release more tokens in the coming weeks.