The Mazar's test group is working with crypto clients

MAZARS ceases to work with his crypto customers, including Binance, the world's largest crypto exchange, since the sector is increasingly examined after FTX's collapse.

The auditor had been commissioned by Binance to create a "proof of reserve" report-something that is under pressure to convince all crypto exchanges to convince nervous customers that they have sufficient assets to compensate for all customer deposits.

"Mazars has indicated that they will temporarily interrupt their work with all their crypto customers worldwide, including Crypto.com, Kucoin and Binance. Unfortunately, this means that we cannot work with Mazars at the moment," said Binance in a statement on Friday.

The news that was confirmed by a person who was informed about the decision by Mazars comes as a consumer and supervisory authorities the stability of crypto exchanges after the breathtaking collapse of FTX in the past month.

At the beginning of this week, more than 1 billion USD was deducted from Binance than the fears about the broader cryptom market increased, in step with the fear that Binance could be the goal of US investigations.

"Last week Binance passed a stress test that should give the community extraordinary certainty that its funds are safe," said the stock exchange on Friday and added that it was able to fulfill the latest withdrawals "without falling".

Binance said that it will hold more than $ 60 billion in assets, enough money to pay withdrawals. However, the company's disclosures do not include its liabilities, which makes it difficult to determine Binance's financial health. The stock exchange previously announced the Financial Times that all customer deposits were secured by appropriate assets and that their "capital structure is debt free".

In a recent interview with CNBC, the CEO of Binance, Changpeng Zhao, refused to confirm whether the stock exchange would be able to finance a potential reclaim of $ 2.1 billion from FTX if requested as part of FTX's ongoing insolvency proceedings.

"We are financially fine," said Zhao, adding that he would leave such problems to the lawyers of Binance. "I think our legal team is perfectly able to deal with it."

In a declaration divided by Binance on Friday, the stock exchange again emphasized its plans to deliver a reserve detection to its customers, but did not set a schedule on a schedule.

"We have contacted several large companies, including the Big Four, which are currently not ready to have a reserve detection for a private crypto company, and we are still looking for a company that will do so," said the stock exchange.

"We welcome additional transparency and check how we can best provide these details in the coming months," added Binance.

The detection of reserves that were verified by external auditors has proven to be a decisive test for market trust in crypto exchanges after it was claimed that FTX had made a fraudulent way to get away with customer assets.

The willingness of auditors such as Mazars to sign these reports was a key factor in calming down nervous investors, since crypto exchanges are trying to prevent "run on the bank" scenarios of the species that decreased.

Before his collapse,

ftx was unable to meet customer demands after withdrawals, which revealed a lack of customer funds in the amount of several billion dollars.

Several auditing companies have explained that they have classified some or all of their crypto -related customers into the status of "high risk", which triggers more thorough work that will take longer and lead to higher invoices.

Mazars was recruited to check the reserves of several crypto exchanges, including Crypto.com and Kucoin, a more limited task as a complete examination of their annual financial statements. Mazars USA LLP is also the global auditor for the parent company of Kraken, Payward Inc.

A representative of Kucoin said that they were informed about the decision and "open to work". [Ing] with every leading and serious audit [or] ".

A spokesman for Crypto.com said that the stock exchange recently provided the evidence of the reserves in cooperation with Mazars and added that it would continue to work with reputable auditing companies in 2023 and beyond.

MAZARS did not react immediately to inquiries about comments.