Further proof of Binance’s solidity? The platform has just completed the audit of its reserves, and the expertise reveals that the reserves in Bitcoin (BTC) of Binance are slightly larger than what had been announced. Something to reassure users who feared another scenario at the FTX.
Binance Bitcoin Reserves Reviewed
The major auditing firm Mazars was responsible for check Binance bitcoin reserves. In her report, she confirms that the number of BTC held by the platform is higher than what had been announced: it is 101% over-collateralized. There are thus 575,742 bitcoins on Binance, or a sum of 9.6 billion dollars at the current price.
The platform has also confirmed that it will carry out further audits. for other assets held, including Ether (ETH). As Mazars points out, this is indeed a review of Binance’s BTC reserves, not an overall review:
“We do not express an assurance opinion or conclusion. If we had carried out additional procedures, we could have noted other elements which would then have been reported.»
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The excess of Binance reserves
As a reminder, Binance has already published “reserve evidence” a few weeks ago, in order to reassure users scalded by the fall of FTX. The platform claims that it has substantial reserves: more than $63 billion worth of cryptocurrencies according to data shared recently by Nansen:
This table shows that Binance has 3 times the crypto holdings of the other 11 exchanges combined ?
Binance $63.3B
OKX $6.2B
Cryptocom $3.41B
$3.12B
KuCoin $2.45B
And othersExchange balances are updated hourly here ➡️ https://t.co/2OSHH7Ngf7 pic.twitter.com/U9sMjp3CL3
— Nansen ? (@nansen_ai) December 6, 2022
Binance’s reserves seem excessive: they correspond triple the reserves of the other 11 listed exchanges. This shows the substantial weight of the company, which has probably reinforced its hegemony since the FTX affair.
Still, the induced panic allowed more transparency for other major players. The latter have published proof of reserves in recent weeks, in order to prove that they do indeed have the funds necessary to respond to their clients’ transactions. As a reminder, FTX had discreetly diverted client funds to its sister company, Alameda Research, which had precipitated the giant’s downfall.
? To read on the same subject – Sam Bankman-Fried reveals that FTX would have sold assets that did not exist to its customers
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Source: Mazars
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Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
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