Crypto audit: after Mazars, BDO drops cryptocurrencies

Unwanted – After the fall of FTX, crypto exchanges tried to reassure their customers by publishing the famous reserve proofs. In this context, Binance had called on the firm Mazars for the publication of an audit report. However, this approach seems to have had the opposite effect compared to that which was sought, after doubts were raised about the report produced. A few days after the document was published, a Binance spokesperson then announced that Mazars temporarily suspended its work with crypto clients, including Crypto.com, KuCoin, and Binance. Apparently audit firms now want to cut ties with industry.

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Audit crisis for crypto companies: is BDO on the way out?

According to a article of the Wall Street Journal of December 16, the audit firm BDO could reconsider his collaboration with crypto businesses. BDO has not explicitly indicated that it will stop working with its current crypto clients. Nevertheless, the current context suggests this scenario.

The collapse of FTX and the resulting crisis of confidence, which is shaking major crypto companies, are among the main reasons why audit firms are distancing themselves from the sector.

Concretely, some audit firms are on the list of direct or indirect victims of the recent turbulence affecting the crypto industry. This is the case ofArmaninothe FTX listener who must face a class action lawsuit after the bankruptcy of the crypto exchange. According to a Forbes article, the company is considering breaking up with its clients involved in cryptocurrencies.

Audit and crypto companies
How many major audit firms will cut ties with crypto companies?

FTX’s setbacks then embarrass other crypto companies. They will be forced to turn to other service providers who are still willing to work in a deserted area by their peers.

Tether (USDT) which has called on BDO Italia for the production of its monthly certificate declarations since August of this year, or even Stasisthe issuer of the stablecoin EURS, which has also relied on BDO for its monthly and quarterly audits since 2018, could thus endure this mistrust audit firms to the sector.

In addition to these two companies, BDO’s client portfolio also includes other companies whose activities are wholly or partially related to cryptocurrencies. These are Revolut, Blockchain.com, and Mercado Bitcoin.

Sam Bankman-Fried finally agreed to be extradited to the United States. Will American justice be able to provide explanations more quickly, on the way in which the former leaders of FTX managed to misuse the assets of the customers, in spite of the audits? In the meantime, the blacklisting of crypto companies by auditing firms will certainly not help solve the crisis of confidence affecting the industry.

In crypto, do not economize on caution! So, to keep your crypto assets safe, the best solution is still a personal hardware wallet. At Ledger, there is something for all profiles and all cryptos. Do not wait to put your capital in safety (commercial link)!

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