Mazars' audit report raised concerns about corporate structure, Bitcoin liabilities, and internal control quality.
As noted by a former Financial Accounting Standards Board member and investment manager, the report released by the audit firm Mazars does not bring investors confidence about the exchange's finance as it lacks information related to the quality of internal controls and how its systems liquidate assets to cover margin loans.
Differences between the total Bitcoin liabilities were also highlighted. The exchange's proof-of-reservesthat Binance was 97% collateralized if excluded assets lended to users through loans or margin accounts, indicating that the 1:1 ratio of reserves to customer assets was not achieved. Mazars' letter states about the difference:
John Reed Stark, Senior Lecturing Fellow at Duke University School of Law and former chief at Office of Internet Enforcement for the Securities Exchange Commission ,"Binance’s “proof of reserve” report doesn’t address effectiveness of internal financial controls, doesn’t express an opinion or assurance conclusion and doesn’t vouch for the numbers. I worked at SEC Enforcement for 18+ yrs. This is how I define red flag.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Binance and Crypto.com Publish Proof-of-Reserve Audits Conducted by Global Auditor Mazars Group – Bitcoin NewsThis week two crypto exchanges provided proof-of-reserves in order to highlight that the trading platforms are backing customer assets 1:1.
Read more »
Bitcoin, Ethereum Technical Analysis: BTC, ETH Consolidate to Start the Weekend – Market Updates Bitcoin NewsBitcoin started the weekend trading above $17,000, as traders prepare for next week’s U.S. Federal Reserve interest decision.
Read more »
Bitcoin mining report: TeraWulf, Core Scientific among top performersHere's how crypto mining companies performed on Friday, Dec. 9.
Read more »
Report Shows Crypto News Publication The Block Was Secretly Funded by Bankman-Fried's Alameda – Bitcoin NewsThe Block executive Michael McCaffrey received $16 million in one payment from Alameda and used the funds to purchase an apartment in the Bahamas.
Read more »
CZ and SBF duke it out on Twitter over failed FTX/Binance dealCZ and SBF continue to beef! In a recent tweet, Binance CEO took a hit at Sam, telling him to 'focus' on himself, adding that the former FTX CEO should have learned to do that by now.
Read more »