Binance Coin (BNB), Tanks 12.5% as Binance Auditor Mazars Suspends Tie

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BNB, Binance’s native cryptocurrency, has dropped 12.5% in the past 24 hours after news broke that Binance’s auditor Mazars Group had suspended ties. BNB crypto is currently trading for $230 and has fallen 20% on the weekly charts.
In partnership with Mazars Group, Binance released its Proof-of Reserves report amid the chaos of the FTX collapse. Many found the report opaque and questioned the overall health of the exchange.

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Things are now interesting as Mazars Groups has cut all ties with crypto firms. This includes cutting ties to Crypto.com, Binance, KuCoin and Binance. The Mazars Group stated in a statement to CNBC:
They “paused its activity in relation to the provision of Proof of Reserves Reports to entities in the cryptocurrency industry due to concerns about the way these reports were understood by the public.”
The auditing firm stated that their reports were “performed in compliance with Reporting Standards relevant for an Agreed Upon Procedures” report.
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Mazars removes Binance’s report
Shortly after Friday’s announcement, Binance’s Proof of Reserves report was removed by the Mazars. A spokesperson for Binance said:
“Mazars has indicated that their work with all crypto clients worldwide will be temporarily halted. This means that we won’t be able to work for Mazars at the moment.

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Changpeng Zhao, Binance CEO, stated that they are currently working with other firms of auditors without naming one. CZ stated that many auditing firms aren’t equipped to audit crypto users and blockchain. He also stated that many audit firms are afraid of crypto businesses.
“There were a few audit firms that audited FTX, and they got burned because the stamp of approval was given. I don’t know how they did their audits. But audits don’t reveal every problem,” continued Zhao.
Over the past week, there have been many questions about Binance’s health. This has led to significant selling of the BNB token. The exchange has managed outflows of $4Billion so far. CZ stated that the exchange is financially sound and there is no reason to be concerned.

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