SEC Heightens Probe Into Auditors Servicing Crypto Exchanges – Bitcoin News

SEC Heightens Probe Into Auditors Servicing Crypto Exchanges – Bitcoin News

According to the U.S. Securities and Exchange Commission’s Paul Munter, the company’s performing chief accountant, the U.S. regulator is monitoring proof-of-reserves (POR) extra carefully. “We’re warning traders to be very cautious of a few of the claims which can be being made by crypto corporations,” Munter defined to the Wall Street Journal (WSJ) on Dec. 22.

SEC Official Warns Investors Should Be ‘Wary’ of Proof-of-Reserve Audits and Crypto Exchange Claims

U.S. regulators, and extra particularly the Securities and Exchange Commission (SEC), are wanting extra carefully at proof-of-reserves (POR) nowadays following the collapse of FTX. Speaking with the WSJ on Thursday, SEC’s performing chief accountant, Paul Munter, defined that traders mustn’t put a lot religion in POR audits and claims. SEC is anxious that traders “could also be getting a false sense of reassurance from the companies’ studies,” the WSJ report detailed.

“We’re warning traders to be very cautious of a few of the claims which can be being made by crypto corporations,” Munter defined. “Investors mustn’t place an excessive amount of confidence within the mere truth an organization says it’s received a proof-of-reserves from an audit agency,” the SEC accountant confused. Munter continued:

[A POR audit] isn’t sufficient info for an investor to evaluate whether or not the corporate has ample property to cowl its liabilities.

The commentary from Munter follows the POR idea gaining traction amongst crypto exchanges since FTX collapsed. Companies like Okx, Binance, Crypto.com, Huobi, and others have launched POR audits however some had been met with controversy. Furthermore, on Dec. 16, Bitcoin.com News reported on the accounting company Mazars Group after it revealed it might not present crypto change audits. Binance’s POR audit accomplished by Mazars was additionally faraway from the net.

“We are growing our understanding of what’s happening within the market,” Munter informed the WSJ. “If we discover truth patterns that we expect are troublesome, we’ll contemplate a referral to the division of enforcement.”

Additionally, after Mazars Group stated it might not supply POR audits to crypto exchanges, a spokesperson for the auditing agency BDO said that week it’s considering which varieties of shoppers to tackle. University of Texas professor Jeffrey Johanns believes auditing companies are doing the suitable factor by being reluctant to supply crypto companies auditing companies. “The Big Four companies have…rightly determined the dangers [of auditing crypto companies] are extraordinarily excessive,” Johanns informed the WSJ.

Tags on this story
accountancy firms, auditing crypto firms, auditing firms, audits, BDO, Big Four firms, BTC Reserves, chief accountant, crypto exchanges, ETH Reserves, Exchange Reserves, Jeffrey Johanns, Mazars Group, PoR, POR audits, SEC, SEC inquiry, sec investigation, SEC probe

What do you consider the SEC’s performing chief accountant and his feedback about POR audits? Let us know what you consider this topic within the feedback part under.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a monetary tech journalist residing in Florida. Redman has been an energetic member of the cryptocurrency group since 2011. He has a ardour for Bitcoin, open-source code, and decentralized purposes. Since September 2015, Redman has written greater than 6,000 articles for Bitcoin.com News in regards to the disruptive protocols rising right this moment.




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