Mazars Group, the audit company that has audited Binance, KuCoin, and Crypto.com, has halted its crypto auditing services.
Mazars, who has provided Proof-of-Reserves for the likes of Binance, has removed those Proof-of-Reserves audits from its website. Those audits were necessary to ensure that crypto exchanges had solvency, were transparent, and were secure. However, it removed those audits, which caused more FUD for the crypto market.
In a recent report, a Binance representative said that Mazars stopped their work for all crypto exchanges. But, they did not mention the exact reasons why. It may have to do with the overall FUD in the market.
Changpeng “CZ” Zhao retweeted someone’s tweet on Twitter, who said, “making a statement on why an auditing company decided to quit working with crypto? Ask them lol.”
Moreover, in another tweet, once the news broke out, CZ implied that blockchains are secure and ensure solvency by default. He said that they are “the most auditable ledger.”
Some noticed that in the previous Proof-of-Reserve reports, Binance lacked information regarding the way they plan to liquidate their assets if huge withdrawals were to occur.
But besides Binance, KuCoin and Crypto.com also have missing Proof-of-Reserves reports on the Mazars website.
Moreover, Armanino, another auditing company, stopped its Proof-of-Reserves audit for OKX and Gate.io.
Given all this FUD that is currently ongoing, we are likely to see more auditing companies refrain from working with crypto exchanges. Either way, this may only be temporary until the situation is stabilized.