12-01-2022 icon

Binance employs accounting protocol to validate digital currency holdings

By Lucy Adegbe
Binance

Prominent digital currency trading platform Binance has commenced an alliance with audit company Mazar as a measure of its proof-of-reserve inspection stirred by the FTX debacle.

Mazars, the audit and advisory protocol known to have served the preceding United States head of state Donald Trump’s firm, was designated to fill in as a formal third-party reserve inspector to complete a part of Binance’s PoR update, as published in the Wall Street Magazine on Wednesday.

The audit protocol has allegedly proceeded with assessments of the trading platform’s revealed information on BTC proof-of-reserve and will move to confirm the latter edit and coins, a mediator for Binance alleged.

According to further details from a spokesperson, the initial confirmatory edit on bitcoin will be finalized before the end of this week. 

The recent report follows Binance transfer of a significant amount of digital currency as one of its measures to the PoR review. The trading giant, November 28, transferred 126,351 Bitcoin, which equates to about $2 billion, to an anonymous wallet with later claims from chair Changpeng “CZ” Zhao that the action was among the PoR procedure.

Many crypto participants have expressed fears as CZ once contended that it strikes as suspicious when a trading protocol transfers a significant amount of digital currency for verification of address.

Binance is not the only trading protocol focusing on gaining users’ trust since after the fall of FTX.

The likes of OKX and KuCoin have made moves to put out their proof-of-reserve declaration.