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

Ripple Raises $200 Million in Funding Round Valuing It at $10 Billion

Ripple, the company that helped created the XRP token, has revealed it raised $200 million in a Series C funding round that valued the firm at $10 billion.

According to Ripple’s announcement, the funding round was led by New York investment company Tetragon, and saw Japan’s SBI Holdings and Virginia-based venture capital firm Route 66 Venture participate in the round.

The company, which was founded in 2012, added that the investors “not only underscore Ripple’s long-term potential,” but will also offer “invaluable industry insight and expertise” as its partners to help Ripple’s business grow.

Its CEO Brad Garlinghouse was quoted as saying:

We are in a strong financial position to execute against our vision. As others in the blockchain space have slowed their growth or even shut down, we have accelerated our momentum and industry leadership throughout 2019.

Ripple uses the XRP token to facilitate cross-border transactions for financial institutions, and has created a blockchain-based interbank messaging system. A significant portion of its income comes from selling its XRP holdings, which some of the cryptocurrency’s investors have criticized, to the point Garglinhouse had to defend the practice.

The firm’s revenue also comes from deals with banks and other financial institutions that use its technology, and says it has over 300 financial services customers throughout the world. One of them, SendFriend, has revealed it’s seeing massive savings in remittance fees through the use of XRP thanks to Ripple’s product powered by the token called “On-Demand Liquidity” (ODL).

Ripple also has partnership deals with industry giants, which include Santander and American Express. It has invested millions into MoneyGram, one of the world’s largest money transfer companies, to help it continue increasing the volume and use of ODL.

Featured image via Pixabay.