BNB drops as Binance validator Mazars stops working with all crypto companies

Audit firm Mazars Group has lost cryptocurrency firms as customers, according to cryptocurrency exchange Binance.

In a statement with bloombergBinance said that “Mazars has indicated that it will be pausing its work with all of its crypto clients globally, including, KuCoin, and Binance.”

“Unfortunately, this means that we will not be able to work with Mazars at this time,” a Binance spokesperson said, adding that the exchange wants to “build more transparency and explore better ways to share these details” in the coming months.

Binance Coin (BNB), the exchange’s native coin, responded to the news with a 5.2% drop on Friday and is currently trading at around $251, according to CoinGecko.

Binance, KuCoin and did not immediately respond DecryptComment request.

Mazar reports began

Last week, Mazars published a Proof of Reserves rating for Binance, which reported 101% security for 575,742 bitcoin In net customer deposits on November 22nd. However, the link to the report on the French company’s website no longer works at the time of publication.

Mazars also conducted an assessment of proof of reserves on the Kucoin and exchanges, and found that BTC, ETH, USDT, and USDC reserves on Kucoin were also overinsured, while had a 1:1 backup of its reserves.

Both reports have also been removed from the company’s website.

Mazars did not immediately respond Decrypts request for additional comments.

The financial health of cryptocurrency exchanges has come under scrutiny in the wake of the FTX crash in November, with several exchanges moving to implement Proof of Reserve reports for the likes of Binance and other major exchanges.

Binance’s Proof of Reserves report faced heavy criticism, as it was not a full or official audit. It also indicated a snapshot of the stock exchange’s assets at a particular point in time and did not disclose its liabilities.

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