KuCoin Crypto exchange hired Mazars to audit the exchange’ Proof-of-reserves, to remain fully transparent with the customers.
KuCoin is a popular crypto exchange and this exchange standing at 4th rank, just after Kraken.
This exchange was founded in 2013 by Michael Gan, Eric Don, Top Lan, Kent Li, John Lee, Jack Zhu, and Linda Lin. But officially launched in late 2017. In 2018, KuCoin started to support fiat deposits.
On 5 December, KuCoin announced that the company hired Mazars, an international accounting firm. Mazars will audit KuCoin’s Proof-of-reserves (PoR) as an third-party auditor.
In short, Mazars will confirm all the user’s fund holdings by the KuCoin exchange via a step-by-step verification through different crypto addresses’ activities, which includes details on main, trade, margin, robot, and contract accounts for Bitcoin (BTC) and Ether (ETH). Mazars was also hired by Binance crypto exchange, a first-ranked crypto company in the crypto world.
FTX’s bankruptcy because of the liquidity crunch forced the crypto companies to show Proof-of-reserves, remain transparent with the customer & also to bring confidence among the crypto investors over the backend operations of the company.
In the very starting, just after the downfall of the FTX exchange, the majority of the crypto exchanges were facing funds outflow as well as users outflow because the majority of the crypto investors were feeling low trust in centralised crypto companies’ services.
To overcome such situations, Ethereum co-founder Vitalik Buterin along with Coinbase & Binance exchange proposed the idea to show the Proof-of-reserves via a blockchain open source-based tool.