Binance’s proof of reserves raises red flags: Report

Binance’s efforts to improve transparency of its reserves also exposed red flags in the crypto exchange’s finances, according to accounting and financial specialists consulted by The Wall Street Journal.

As noted by a former Financial Accounting Standards Board (FASB) member and investment manager, the report released by the audit firm Mazars give not bring investors confidence about the exchange’s finances, as it lacks information related to the quality of internal controls and how Binance’s systems liquidate assets to cover margin loans.

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