CryptoQuant has released a report analyzing the recently released proof-of-reserves audit of Binance.
Centralized exchanges have been cast into the spotlight over the past month following the collapse of FTX, none more so than Binance, which has been scrambling to reassure customers and investors that it has sufficient reserves and is fully backed. A report by CryptoQuant released on Dec. 14 says its analysis confirms that Binance’s reserves are accounted for.
Binance released a proof-of-reserves report but it was criticized as being an agreed-upon procedure” and not a full audit. Additionally, the report didn’t address the effectiveness of internal financial controls, according to the former chief of the Securities Exchange Commission’s Office of Internet Enforcement, John Reed Stark.
But CryptoQuant has backed the findings of audit firm Mazars, stating that liabilities reported by Binance are very close to its estimation of 99%.
Additionally, Binance has an acceptable Clean Reserve, which means its own token, BNB, is still a low proportion of its total assets.
