New Superior Trading Platform Emerges as Binance Insolvency Fears Arise – Find Out More
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Fears over Binance continued to escalate on Friday morning with CEO Changpeng Zhao working to reestablish client trust after a tough week.
As CryptoNews reported earlier this week, Binance investors were not satisfied with the exchange's Proof-of-Reserves audit.
The exchange also temporarily halted withdrawals on stablecoin USDC, which only led to more panic from investors and then saw more than $3 billion in withdrawals in 24 hours.
The news comes in the wake of the FTX disaster and is in lockstep with ongoing reports that Zhao could be facing money laundering charges in the US.
Now, the Mazars Group, which was appointed as the official auditor of Binance's proof-of-reserve updates in late November, has now removed the Binance audits from its website.
According to Bloomberg, Mazars has now halted all work for crypto clients, a major blow to an industry seeking reassurance after the collapse of FTX.
Earlier this month the accounting firm's proof-of-reserves assessment found that its Bitcoin reserves were overcollateralized - the link to the report on Mazar's website is now dead.
The auditor also found that KuCoin's BTC, ETH, USDT and USDC reserves were overcollateralized, while Crypto.com was fully backed 1:1.
In response to the news, a Binance spokesperson offered an extremely brief response to CoinDesk:
Mazars has indicated that they will temporarily pause their work with all of their crypto clients globally, which include Crypto.com, KuCoin, and Binance. Unfortunately, this means that we will not be able to work with Mazars for the moment.
The last 12 months have been extremely tough
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