What is Mazars?
Mazars has made headlines again this year after confirming it is pausing work for crypto clients such as Crypto.com, KuCoin, and Binance, the world’s largest crypto exchange. Before announcing the news that shocked the cryptocurrency community in February, the accounting firm turned down another well-known client, former President Donald Trump.
According to a statement by Mazars on Friday, the company paused its activity relating to the provision of Proof of Reserves Reports for entities in the crypto sector due to concerns regarding the public’s understanding of these reports.
Mazars is a global professional services company that provides various financial services, including audit, tax, and outsourcing.
Although it has offices and personnel across 90 nations, most are in Europe. There are 12 offices for Mazars in the U.S., including ones in Texas, New York, and California.
Mazars reported a fee income of $2.22B (€2.1B) in 2021. Mazars provided cryptocurrency exchange clients with proof-of-reserve reports (PoR). PoR reports aim to ensure exchanges have enough assets to back up customer balances.
Mazars provided cryptocurrency exchange clients with proof-of-reserve reports (PoR). PoR reports aim to ensure exchanges have enough assets to back up customer balances. For instance, Binance explained its PoR system on its website after the FTX scandal. It showed a 101 percent Bitcoin reserve ratio. With the option to confirm customer funds, Crypto.com also made its Mazars PoR report accessible online.
However, it was made clear in the Mazars PoR report that these were not financial audit engagements and that the firm did not express an opinion or assurance conclusion.
Mazars was Trump’s long-term accounting firm, and its services included issuing financial statements for the former president. These statements included the valuations of Trump’s assets, including real estate properties. However, Mazars U.S. general counsel William Kelley wrote to the Trump Organization in February. Mazars, like any other accounting firm and its CPAs, is bound by standards such as good faith, due professional care, and public interest.
Firms legally have to ensure that their financial statements are accurate. Clients, investors, or third parties who rely on their work may sue for negligence or fraud if they do not.