Binance Crypto exchange holds more than 100% of its reserves, a third-party auditor confirmed.
Mazars is an international accounting firm. In recent weeks, this firm was approached by many crypto exchanges. Namely Binance & KuCoin crypto company hired this auditor to confirm their corresponding clients’ reserved funds.
Recently Mazars published its report on the Binance exchange and confirmed that the exchange is holding more than 100% of the reserves.
“With the inclusion of In-Scope Assets lent to customers through margin and loans which are overcollateralized by Out-Of-Scope Assets, we found that Binance was 101% collateralized.”
After the downfall of the FTX crypto exchange, the majority of the crypto exchanges are moving toward the public Proof-of-Reserves (PoR) to ensure that users’ funds are fully reserved on the self custody crypto addresses so that their corresponding services can easily maintain the trust level with customers.
Earlier this, Kraken CEO Jesse Powell claimed that Binance’ provided PoR doesn’t prove anything in absence of any third-party auditor.
Binance & its services
Binance is a first-ranked crypto company in the crypto sector because of its better services. Exchange not only provides crypto trade services but also provides a launchpad to launch new tokens & also decentralized wallet service so that crypto investors can easily hold their funds under self custody.
In the past Binance was victim of hack attack only a particular number of times and the exchange managed the situation perfectly. And to this date, this exchange is known for its security & also its ability to fight against the bad actors which abuse the decentralized nature of the crypto networks.
At present, Binance exchange working on an open-source tool to allow the crypto platforms to provide Proof-of-reserves to the clients, to maintain Trust.