There has been an increased effort by all major crypto exchanges to come out transparent about the state of their financial holdings.
For its Proof of Reserves Effort, Binance Has Hired Former Auditors for the Trump Organization.
In order to aid with its Proof of Reserves (PoR) endeavor, the major cryptocurrency exchange Binance has hired the accountancy firm Mazars. Mazars formerly worked for the business of the previous President of the United States, Donald Trump.
According to a report (1) in The Wall Street Journal, which cited a spokeswoman for the exchange, Binance decided to utilize Mazars as an impartial third party to evaluate its reserve holdings to help reassure investors that reserves protect their coins.
According to the source, Binance did not clarify which of Mazar's offices would complete the reserves verification. A spokesman for Mazars declined to comment on the matter.
A spokesman for Binance (2):
"Mazars is reviewing all information that we have shared publicly to date on Proof of Reserves (BTC) and will also be verifying future updates and tokens. [...] The first verification update for BTC will be completed this week."
The Need for Proof of Reserve Disclosures
This is another step in Binance's effort to calm worried investors & comfort them that their funds are safe with the platform. It follows the release of its PoR on November 11, which is part of Binance's ongoing effort to reassure investors that their money is safe with the exchange.
The purpose of the PoR is to give each investor the ability to evaluate whether or not their holdings are, in fact, protected by reserves.
Proof of Reserves is a third-party audit carried out to guarantee that a custodian retains the assets it claims to be keeping on behalf of its customers. This information was previously disclosed.
As a result of the FTX collapse and the anxiety it has caused, many organizations have decided to implement Proof of Reserves. However, it should be noted that several companies had already implemented PoR before the major implosion.
You may learn more about Proof of Reputation and the firms that are already using it by reading this.
Mazars is a multinational company that provides auditing, tax, and consultancy services. Mazars USA, the firm's operation in the United States, served as Trump's accounting firm for a long period. However, in February of this year, it announced it was going to cut ties with Trump and his business empire.
The company stated it could no longer tolerate such a decade's worth of annual financial reports that it compiled for the Trump Organization. This information was reported (3) by The New York Times, which cited court documents.