Third party auditor confirms Binance Bitcoin reserve is over collateralized Third party auditor confirms Binance Bitcoin reserve is over collateralized
The financial auditor Mazars focused on Binance users’ Bitcoin holdings across several blockchains
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Updated: Dec. 7, 2022 at 3:05 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Binance’s Bitcoin (BTC) reserves collateralization is in excess of 100% as of Nov. 22, when a snapshot of its total liabilities and reserves was taken, according to financial auditor Mazars.
As part of #Binance’s user fund transparency work and Proof of Reserves updates, we're working with digital assets experts at global financial audit, tax and advisory firm, @Mazars_SA.
The first report from Mazars about Binance’s $BTC Proof of Reserves has been published today.
— Binance (@binance) December 7, 2022
To arrive at this result, the auditor considered in-scope assets lent through margin and loan service offerings that are collateralized by out-of-scope assets.
The firm focused on Binance’s users’ Bitcoin holdings across several blockchains like the Bitcoin network, Ethereum (ETH), and Binance-backed blockchain networks (BNB Chain and Binance Smart Chain).
Mazars wrote:
“At the time of assessment, Mazars observed Binance controlled in-scope assets in excess of 100% of their total platform liabilities.”
Its users can also independently confirm that their assets were included in the audit by pasting their Merkle hash into the appropriate box on the page.
The crypto exchange revealed that the proof-of-reserves for other tokens would be released soon.
Previously, Binance revealed that its customer net balance was 575,742.4228 BTC as of Nov. 11, while its on-chain reserves were 582,485.9302 BTC.
Binance CEO Changpeng Zhao tweeted on Nov. 28 that the exchange had moved over $2 billion worth of BTC as part of its reserve audit efforts.
This is part of the Proof-of-Reserve Audit. The auditor require us to send a specific amount to ourselves to show we control the wallet. And the rest goes to a Change Address, which is a new address. In this case, the Input tx is big, and so is the Change. Ignore FUD! https://t.co/36wUPphIZk pic.twitter.com/2NkH5L5J9j
— CZ 🔶 Binance (@cz_binance) November 28, 2022
Its previous proof of reserves was criticized by Kraken’s Jesse Powell for not including liabilities.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Kraken
Kraken is a San Francisco-based digital asset exchange in euro volume and liquidity that trades various currencies, including Canadian dollars, US dollars, British pounds, and Japanese yen.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.
Jesse Powell is an expert in virtual currencies, online/international payments and fraud, as well as co-founder and former CEO of Kraken, one of the most trusted and largest Bitcoin exchanges in the world with number one EUR market share.