A report by auditing firm Mazars has revealed that Binance's bitcoin reserves have a 101% collateralization ratio, suggesting that the exchange has more than all of the BTC it needs to cover customer deposits.
In a recent report, Mazars claimed the world's largest cryptocurrency exchange has a 101% collateralization ratio on 575,742 BTC in net customer deposits as of midnight UTC on November 22.
"At the time of assessment, Mazars observed Binance controlled in-scope assets in excess of 100% of their total platform liabilities," the report providing Binance’s proof-of-reserves and proof-of-liabilities verification said.
Notably, the collateralization report matches the figure provided by Binance late last month in its first proof of reserves report. And prior to that, Binance had revealed some initial details about its reserves right after FTX's bankruptcy as nervousness started to spread in the crypto community.
Mazars wrote that they conducted an Agreed-Upon Procedures (“AUP”) engagement, which means “performing the procedures that have been agreed with Binance, and reporting the findings.”
They said they make no claim regarding the appropriateness of the AUP, and that “the AUP engagement is not an assurance engagement. Accordingly, we do not express an opinion or an assurance conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported.”
A Proof of Reserves (PoR) is an independent check conducted on centralized crypto exchanges by third parties. The goal is to make sure those platforms hold the assets they claim on behalf of their clients.
Binance CEO CZ was one of the very first crypto executives to support the idea of sharing proof-of-reserves in a bid
Read more on cryptonews.com