As the FTX crash highlighted the need for more transparency from centralized crypto exchanges, working with auditors was the step that top cryptocurrency exchanges took to ensure their assets were in order. However, two of the most prominent auditors have suddenly dropped crypto auditing services, leaving the exchanges hanging at a very critical time.

At the moment, the official website of French audit firm Mazars Group shows that its division, called Mazars Veritas, which is dedicated to cryptocurrency audits is now offline. The company has worked with several prominent cryptocurrency exchanges including Binance, KuCoin, and Crypto.com.

Although there was no official announcement from Mazars at the time of writing, Binance confirmed that the auditing firm indicated that it has temporarily stopped doing business with all of its crypto clients globally.

Speaking to Cointelegraph, a Binance spokesperson noted that due to the FTX incident, people were looking for more assurances that other exchanges would not crash. They explained that:

“It was FTX’s failure to ensure that the exchange’s assets were greater than its liabilities to clients that caused it to go bankrupt. So, naturally, people want multiple ways to ensure that this doesn’t happen again.”
The company said that it is currently communicating with other accounting firms, including the four major ones, and will work to provide other technical solutions.

Related: Silvergate faces class action lawsuit over FTX and Alameda’s dealings

Meanwhile, accounting firm Armanino has reportedly terminated its cryptocurrency auditing services. The company has worked with several cryptocurrency exchanges such as OKX, Gate.io, and the beleaguered FTX exchange. Citing anonymous sources, the media outlet Forbes reports that the company may face pressure from its non-crypto customers after being included in a class action lawsuit for its inability to detect issues with FTX.

The accounting firm started cryptocurrency auditing services in 2014, providing services such as Proof of Reserve audits and stablecoin certificates, services that are currently in high demand as the FTX collapse prompted users to become more wary of centralized cryptocurrency exchanges.

LEAVE A REPLY