Third party auditor confirms Binance Bitcoin reserve is over collateralized

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Binance’s Bitcoin (BTC) reserves collateralization is in excess of 100% as of Nov. 22, when a snapshot of its total liabilities and reserves was taken, according to financial auditor Mazars.

To arrive at this result, the auditor considered in-scope assets lent through margin and loan service offerings that are collateralized by out-of-scope assets.

The firm focused on Binance’s users’ Bitcoin holdings across several blockchains like the Bitcoin network, Ethereum (ETH), and Binance-backed blockchain networks (BNB Chain and Binance Smart Chain).

Mazars wrote:

“At the time of assessment, Mazars observed Binance controlled in-scope assets in excess of 100% of their total platform liabilities.”

Its users can also independently confirm that their assets were included in the audit by pasting their Merkle hash into the appropriate box on the page.

The crypto exchange revealed that the proof-of-reserves for other tokens would be released soon.

Previously, Binance revealed that its customer net balance was 575,742.4228 BTC as of Nov. 11, while its on-chain reserves were 582,485.9302 BTC.

Binance CEO Changpeng Zhao tweeted on Nov. 28 that the exchange had moved over $2 billion worth of BTC as part of its reserve audit efforts.

Its previous proof of reserves was criticized by Kraken’s Jesse Powell for not including liabilities.

The post Third party auditor confirms Binance Bitcoin reserve is over collateralized appeared first on CryptoSlate.

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