Deloitte, Ernst & Young, KPMG and PWC are declining the chance to audit Binance, despite the accounting firms having a long history with Coinbase.
The Big Four
According to the largest crypto exchange by volume, the top audit firms are currently unwilling to perform a proof-of-reserves audit for a crypto company.
According to CNBC, the Big Four accounting firms are also unsure whether the firms will end their collaboration with their current crypto clients. That would mean that Coinbase can no longer collaborate with Deloitte.
The firms’ unwillingness to help crypto companies came to light after the accounting firm Mazars Group suspended all work with its cryptocurrency clients on Friday.
Meanwhile, another accounting firm, Armanino, has also announced that it is no longer taking on crypto clients. It did this shortly after its client FTX went bankrupt. Armanino was named in a class action suit last month for failing to discover violations at FTX.US. The company also controlled the crypto exchange Kraken.
We have contacted several large companies… and we are still looking for a company to do this.
– Binance
According to the representative, proof of reserve certification by an independent accounting firm attests that the exchange’s assets are equal to or greater than its debts.
Binance also stated that it would go further to demonstrate that its assets are available on the blockchain. In addition, it aims to demonstrate that all customer funds are safe using the Merkle Tree proof. The Merkle Tree evidence shows that a company actually holds the assets it claims to have.
Since the demise of its rival, Binance has received more attention. In the past week, $6 billion is said to have been withdrawn. This was done to test the solvency of the exchange due to the ongoing FUD.
The spokesperson added that the company plans to provide more details in the coming months. However, it remains to be seen which auditor Binance will take on as a client. The absence of skilled auditors is a major problem in the crypto sector.