In a major move, accounting firm Mazars Group has suspended all work for cryptocurrency clients, including big players like Binance and Crypto.com.
CNBC shared details about the developing situation, indicating that Mazars Group's decision to suspend work came on the heels of the global accounting firm releasing “proof of reserve” reports for several digital asset exchanges.
Per CoinDesk, a now-broken link on the Mazars website indicated that Binance's bitcoin reserves were overcollateralized.
A spokesperson for the company, the world's largest crypto exchange, said simply, “Unfortunately, this means that we will not be able to work with Mazars for the moment."
As for Crypto.com, the brand published a proof of reserves audited by Mazars on December 9. The document asserts that customer assets are being held on a one-to-one basis, meaning that all deposits are fully backed by the exchange's reserves.
Another of Mazars Group's former crypto clients, KuCoin, issued a statement indicating that its proof of reserve report was successfully delivered by Mazars before the company suspended service.
“In the future, we are open to work with any leading and reputable audit to provide the third-party verification report,” a spokesperson shared.
At this time, it is presumed that Mazars Group has only temporarily cut ties with clients in the cryptocurrency space but it is unknown when accounting services for these clients will resume.
Though the two situations are unrelated, this is the second major cryptocurrency story to break this week. FTX founder Sam Bankman-Fried was arrested in the Bahamas on December 12.
The 30-year-old, formerly the wunderkind of the cryptocurrency world, is facing a number of charges, including wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy, and money laundering.
This is a developing story that will be updated as new details are released.
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