Binance’s Bitcoin reviewed by Mazars yields promising results
Approximately one hundred percent — Following the announcement that FTX had filed for bankruptcy, the CEO of Binance, Changpeng Zhao, published a list of best practices for cryptocurrency exchanges. These standards emphasize the significance of transparency and constitute a condition that Binance has satisfied by subjecting itself to an examination.
Mazars’s audit of Binance demonstrates how transparent the figures are.
The findings of the audit on Binance’s reserves were detailed in a report that was submitted on December 7 by the cabinet Mazars. Adequate comprehension of the concepts of In-Scope Assets and their opposite, the Out-Scope Assets indicated in the paper is required for the interpretation of the numbers presented in the document.
The In-Scope Assets include not only client spot and margin accounts, but also derivatives, loan, financing, and earn accounts for the Bitcoin (BTC) and wrapped bitcoins BBTC and BBTB, all of which are hosted on the BTC, ETH, and BNB blockchains. In addition, the In-Scope Assets include accounts for financing and earning.
Mazars reported that the cryptocurrency exchange ” was 101% guaranteed ” about its asset balance. This included the In-Scope Assets that were lent to customers in the form of margins or loans, which are secured by Out-Scope Assets of a higher value.
In this scenario, the net balance of assets in Bitcoin is slightly higher than the net balance of liabilities, which totals 575,742.42 BTC. This figure does not take into account any In-Scope Assets that have been loaned out to consumers.
When the audit does not take into account the Out-Of-Scope Assets that customers promise for In-Scope Assets lent, whether, through the use of margins or lending services, this level of assurance is reduced to 97%.
Mazars specifies in his report that Binance asked the company to carry out an “agreed-upon procedures” engagement, which is also referred to as an “agreed upon procedures (AUP) type” in English. This pertains to the temporal dimension for the interpretation of these figures. In English, this phrase is written as “agreed upon procedures (AUP) type.”
At 23:59:59 UTC on November 22, 2022, the primary focus of this mission was on the cryptocurrency assets owned by the clients as well as the liabilities owed to them in connection with those assets.
A transfer of bitcoins worth more than 2 billion dollars was carried out by the cryptocurrency exchange, and Changpeng Zhao was required to explain the grounds for the transfer in a tweet that was sent on November 28. The Chief Executive Officer of Binance has stated that the company wished to prove to the auditor that it has control over the portfolio. Will the cryptocurrency community feel more at ease with the management of Binance customer funds after this fresh report on the subject has been issued by Mazars?
The auditing company Mazars today released a report on the cryptocurrency holdings of the cryptocurrency exchange Binance. The same realization was reached by the accounting firm at the same time that Binance did.