BNB, the native cryptocurrency of crypto exchange Binance, is down 12.5% in the past 24 hours as news broke that Binance’s audit partner Mazars Group has suspended ties. The BNB crypto is currently trading at a price of $230 and is down 20% on the weekly chart.
Amid the chaos caused by the FTX collapse, Binance recently unveiled its Proof-of-Reserves report in partnership with accounting firm Mazars Group. However, many found the report opaque, questioning the overall health of the exchange.
It has now become interesting because Mazars Groups has cut ties with all crypto companies. This includes cutting ties with KuCoin, Binance and Crypto.com. In a statement to CNBC, the Mazars Group explained:
They “paused their activity regarding providing proof of reserve reports for entities in the cryptocurrency sector due to concerns about how these reports are understood by the public.”
However, the audit firm added that their reports are “conducted in accordance with reporting standards relevant to an agreed upon procedure report”.
Mazars removes the report from Binance
Shortly after the announcement came on Friday, Binance’s Proof-of-Reserves report was removed from the official Mazars website. A Binance spokesperson said:
“Mazars has indicated that they will temporarily suspend work with all of their crypto clients worldwide. Unfortunately, this means that we will not be able to work with Mazars for the time being”.
However, Binance CEO Changpeng Zhao said they are working with other accounting firms without naming any. CZ added that accounting firms do not have a clear understanding of how to audit blockchain and crypto users. He also added that many accounting firms are afraid of crypto companies.
“There are a few audit firms that audited FTX and they got burned for giving the stamp of approval, and I don’t know how they did the audits. But audits don’t reveal every problem,” Zhao continues.
Several questions have been asked about Binance’s health over the past week. This has also led to big sales in the BNB token. However, the exchange has effectively processed outflows of $4 billion so far. CZ said the stock market is financially strong and there is no cause for concern.
Bhushan is a FinTech enthusiast and has a good flair for understanding financial markets. His interest in economics and finance draws his attention to the new emerging Blockchain Technology and Cryptocurrency markets. He is constantly in a learning process and keeps himself motivated by sharing his acquired knowledge. In his spare time he reads thriller fiction novels and sometimes explores his culinary skills.
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This post Binance’s BNB Token Under Selling Pressure With Mazars Exit
was published first on https://coingape.com/bnb-tanks-12-5-as-binance-auditor-mazars-suspends-ties/