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

CoinBits Allows Users to Earn Passively By Converting, Saving Change in Bitcoin

Erik Finman, an early Bitcoin (BTC) adopter, has launched a crypto platform called CoinBits, which allows investors to passively invest in the flaghship cryptocurrency.

According to TechCrunch, Finman’s new app, CoinBits, intends to democratize access to cryptocurrency by allowing people from all walks of life to make small investments through commonly-used investment and savings strategies. These reportedly include roundups on transactions made via credit or debit card purchases.

The CoinBits app will also support conversion of fiat currency to bitcoin via regular transactions from users’ checking or savings accounts. While CoinBits has been designed to mainly benefit its users, Finman revealed that his own BTC holdings will also grow as more people use the small savings app.

No Commissions on Transactions, 98% of Bitcoins Stored Offline

As explained on CoinBits’ official website, users can invest small amounts such as $10, $25, $50, or $100 through the app’s web-based interface. The savings app also lets users adjust the risk level for their investments.

Notably, the CoinBits app does not charge transaction fees and 98% of users’ bitcoins are kept securely in cold storage (offline).

Explaining how investing in cryptocurrencies can be challenging for some people, due to their highly technical nature, Finman said:

Overall, investing in bitcoin is complicated and can feel almost impossible. CoinBits allows you to put that spare change in bitcoin. For example, if you spend $1.75 on French fries, that remaining 25 cents is invested automatically.

As noted on CoinBits’ website, the company handles withdrawals and users are charged a $0.50 fee for same-day processing. There’s also an option to download the transaction history associated with users’ accounts. This makes it easier for users to manage their finances and track how much they may have gained or lost on their bitcoin investments.

Crypto-Backed Lender Receives $25 Million in Deposits Two Weeks After Launch

As the crypto and blockchain ecosystem continues to evolve, many new startups have been offering different products and services which allow users to earn passively on their digital asset holdings. In March 2019, BlockFi Lending LLC, a New York-based “secure non-bank lender” announced it had received $25 million in cryptocurrency deposits just two weeks after launching its crypto-backed loans packages.

BlockFi’s investment packages allow users to earn interest on their Bitcoin (BTC) and Ether (ETH) investments.