Many questions about Binance’s reserves remain unanswered after a recent “audit” report, according to a recent report published by the Wall Street Journal
According to a recent report by the Wall Street Journal, Binance’s finances remain a mystery in spite of its recent effort to bring more transparency to the table.
Earlier this week, auditing firm Mazars released an “audit” report, stating that the exchange’s reserves are fully collateralized. The top centralized exchange users hold approximately $9.7 billion and the company covers 101%.
However, Douglas Carmichael, former chief auditor of the Public Company Accounting Oversight Board (PCAOB), says that the Mazars report doesn’t actually answer questions about whether the funds are sufficiently collateralized.
Mazars also didn’t express “an assurance conclusion,” which means that the numbers might not be entirely accurate. There was no information regarding the exchange’s total assets and total liabilities.
The Paris-based auditor claims it was following a Binance-requested procedure.
Other major industry players were encouraged to offer more transparency to their reserves by the rapid implosion FTX exchange.
As reported by U.TodayArk Invest recently reported that centralized exchanges have experienced the largest net outflows in recent history.