Binance's Bitcoin Reserves Are Overcollateralized: Report

Binance Overcollateralized Reserves

In a statement, Mazars stated that at the time of the evaluation Binance controlled in-scope assets that exceeded 100% of their total network liabilities. The precise proportion was 101%.

Rivals are hurrying to increase the transparency of their cash reserves in response to the demise of the controlled cryptocurrency exchange FTX due to liquidity problems. Customers were to be reassured by the Mazars assessment that their bitcoin was securitized, was present on the blockchain, and was under Binance's management.

No Use of Tether Report

Francine McKenna, a specialist in accounting information at The Wharton School of the University of Pennsylvania, claims that the evaluation is not a formal audit. They compared the balances for each public key address using a list they obtained from management. They didn't compare balances held by independent banks, custodians, or depositories.

The USDC or Tether report is more useless than this, she said. The U.S. Securities and Exchange Commission (SEC) charged Friedman LLP, a New York-based accounting company, in September with repeated breaches of federal securities laws and inappropriate professional behavior, and the auditor has assessed a $1 million punishment. Friedman LLP audited Tether, the stablecoin's issuer, in 2017. In August, Tether appointed BDO Italia to handle its recurring attestation reports.

Study on Binance

On November 22, Mazars performed a collateralization study on Binance's overall reserves and liabilities. Customers' spot, options, margin, futures, financing, loan, earn and wrapped bitcoin accounts stored on the Bitcoin, Ethereum, BNB Chain, and Binance Smart Chain blockchains were among the assets included.