Tezos Foundation Hires “Big Four” PwC As External Auditor

Omar Faridi
  • The controversial Tezos project’s finances are to be audited by PriceWaterhouseCoopers (PwC).
  • The blockchain project’s beta platform launched on June 30 after several lawsuits.

The Tezos Foundation recently announced that PriceWaterhouseCoopers’ (PwC) Switzerland branch will audit the foundation’s operations and finances. This is notably the first time a major blockchain organization will be audited by PwC.

PwC is a multinational firm based in London, part of the “Big Four”, which refers to the four biggest professional services networks in the world. The giant financial firm has over 200,000 employees and provides accounting, auditing, legal, and tax services to its clients in 158 different countries.

Tezos To Be Examined

Now, presumably in an attempt to gain the confidence and trust of the crypto community, the Tezos foundation stated in its press release that it is “committed to operating with the highest degree of integrity.” Tezos’ press release reads:

The Foundation is committed to operating with the highest degree of integrity in the service of our mission to support the Tezos protocol, ecosystem, and community. Engaging a top-tier independent external auditor ensures that the Tezos community and its observers can trust our operations and use of finances.

Tezos Foundation

Notably, there was a lot of hype surrounding the Tezos project, which helped it raise $232 million through an initial coin offering (ICO) in July 2017. The controversial project was heavily backed by Tim Draper, a well-known venture capitalist and crypto billionaire.

Notably, there were a number of lawsuits filed against Tezos shortly after it completed its ICO, forcing it to replace its president and two other executives in February. In April, Tezos’ co-founder Arthur Breitman had to pay a $20,000 fine to the Financial Industry Regulatory Authority (FINRA).

The fine was over alleged false statements regarding his side business project, while employed at Morgan Stanley, a US-based multinational investment bank. Due to the project’s legal troubles, its beta platform only launched late last month on June 30.

PwC announced in March a plan to launch an auditing service for blockchain-related companies. Per the auditor, several firms had already registered for its service before its launch. In May, PwC also revealed its acquisition of a minority stake in VeChain, a blockchain-based platform that focuses on supply chain management and provides financial and anti-counterfeiting services

Silvergate Bank to Offer Institutional Crypto-Backed Loans

Neil Dennis

Silvergate Bank, one of thefinancial service providers of choice for the cryptoasset industry, has said it plans to add crypto-lending to its array of services.

The California-based company, which provides commercial banking and payments services to many of the top crypto-related firms such as Bitstamp and Coinbase, said in an updated IPO filing it would offer institutional clients loans in fiat currency collateralized with cryptoassets. 

This service would be included in its Silvergate Exchange Network - a payment system designed for its crypto exchange clients. The company said in the prospectus update:

Offering lines of credit would improve liquidity within the order book of our exchange clients, enabling additional trading on their platforms, potentially reducing pricing arbitrage across exchanges and improving the stability of digital currencies.

Risk Returns

Silvergate said the service would earn it "attractive risk adjusted returns" because even if the price of cryptoassets being held as collateral should fall, it can sell the assets on one of its client exchanges.

The bank has been rapidly expanding its roster of crypto-related clients: when it updated its IPO prospectus on December 31 it had 542 crypto clients, compared with 655 as of June 30.