Crypto exchange Binance hires Mazars to verify reserves

Digital-asset exchange Binance Holdings Ltd. has appointed accounting giant Mazars to verify its token reserves, as the meltdown of its former rival FTX triggered increased demand for more transparency from cryptocurrency exchanges.

A Binance spokesperson confirmed the appointment, which was first reported by The Wall Street Journal, adding that the company "is working with Mazars to conduct a third-party financial verification as part of the proof of reserves updates."

Tiffany Hagler-Geard/Bloomberg

"Mazars is reviewing all information that we have shared publicly to date on proof of reserves. and will also be verifying future updates and tokens," the spokesperson said in an emailed statement to Bloomberg News. "The first verification update for BTC will be completed this week." 

The collapse of Sam Bankman-Fried's FTX empire has investors seeking more transparency from the usually opaque crypto exchanges. Earlier this month, Binance disclosed its holdings of major tokens and said more data will be shared later in a "full audited report." The move comes as other exchanges also vowed to provide more detailed disclosures to clients on the tokens they hold.

Mazars is a global accounting firm headquartered in Paris, France. Its US division, Mazars USA LLP, worked for former US President Donald Trump's company. A representative from Mazars did not immediately respond to a request to comment.