International audit, tax and advisory firm Mazars Group confirmed that cryptocurrency exchange giant Binance holds more than all of the Bitcoin it needs to cover customer deposits. 

Binance requested Mazars Group perform an AUP engagement on the customers’ cryptocurrency holdings and corresponding liability of funds owed to the customers of Binance.

According to the report published by Mazars, with the inclusion of In-Scope Assets lent to customers through margin and loans which are overcollateralized by Out-Of-Scope Assets, Binance was 101% collateralized. 

As of midnight UTC on November 22, Binance Customer Liability Report Balance was 597,602.29, net liability balance (excluding In-Scope Assets lent to customers) was 575,742.42, Asset Balance Report was 582,485.93. This accounts for all Bitcoin assets, including those circulating on other networks like Ethereum, BNB Chain, and Binance Smart Chain.   

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7 December 2022

Binance Capital Management Co. Ltd.

c/o Harkom Corporate Services Limited,

Jayla Place, 2nd Floor, Road Town,

Tortola, VG1110,

British Virgin Islands.

Dear Sir / Madam

BINANCE CAPITAL MANAGEMENT CO. LTD. (“BINANCE”) – PROOF OF RESERVE (“POR”) REPORT

Our report is solely for the purposes of offering Binance’s customers and prospective customers additional transparency and reassurance that their In-Scope Assets are collateralized, exist on the blockchain(s) and are under the control of Binance at the below mentioned reporting date. For the purpose of this Agreed-Upon Procedures (“AUP”) engagement the term “collateralized” will be defined as where Binance’s In-Scope Assets are equal to or greater than the net liability of In-Scope Assets as per the Customer Liability Report owed to and receivable from customers.

For the purpose of this engagement the customers’ spot, options, margin, futures, funding, loan and earn accounts for bitcoin (“BTC”) and wrapped bitcoin (“BBTC” and “BTCB”) held on the Bitcoin, Ethereum, BNB Chain and Binance Smart Chain blockchains will be defined as the In-Scope Assets.

Binance has requested that we perform an AUP engagement on the customers’ cryptocurrency holdings and corresponding liability of funds owed to the customers of Binance as at 23:59:59 Universal Time Coordinate (“UTC”) on the 22nd of November 2022 (“the reporting date”). The management of Binance acknowledge that the AUP are appropriate for the purpose of the engagement and are responsible for the subject matter on which the AUP are performed.

We have conducted the AUP engagement in accordance with the International Standard on Related Services (ISRS) 4400 (Revised), Agreed-Upon Procedures Engagements. An AUP engagement involves us performing the procedures that have been agreed with Binance, and reporting the findings, which are the factual results of the AUP performed. We make no representation regarding the appropriateness of the AUP.

This AUP engagement is not an assurance engagement. Accordingly, we do not express an opinion or an assurance conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported.

We have complied with the relevant ethical requirements. For the purpose of this engagement, there are no independence requirements with which we are required to comply.

Our firm applies International Standard on Quality Control (ISQC) 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements, and accordingly, maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

PROCEDURES AND FINDINGS

We have performed the procedures described below, which were agreed upon with Binance on the POR report.

MAZARS

Partner: Wiehann Olivier

7 December 2022

South Africa