Is your crypto safe in Binance? Here’s what Mazars’ audit says – The Average Joe

    Is your crypto safe in Binance? Here’s what Mazars’ audit says

    Victor Lei — Head of Research

    December 7, 2022

    December 7, 2022

    Binance is the world’s largest crypto exchange.

    Its founder, CZ, played a big role in taking down FTX and exposing Sam Bankman-Fried (SBF) for his fraud. But Binance is similar to FTX — a centralized crypto exchange in a crypto-friendly country (Dubai) with its own token ($BNB).

    The problem with FTX was that the assets users “owned” weren’t actually there.

    • So users began questioning the safety of holding their assets inside Binance and other exchanges.
    • In response, several exchanges released “proof of reserves” — an auditing procedure that verifies an exchange’s holdings.

    Yesterday, global auditing firm Mazars (one that isn’t in the metaverse) released a report detailing Binance’s proof of reserves.

    Mazars’ verdict: Binance has enough bitcoins to cover user balances. Assets > liabilities.

    The problem: It’s not an official audit and isn’t thoroughly verified — per Francine McKenna, Lecturer in financial accounting at Wharton (YF!).

    There’s nothing safer than holding your crypto outside of exchanges in your own crypto wallets.

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