Grant Thornton Audited $10 Billion in Crypto Assets in Q2 2019
Verifying the existence and value of digital-assets in the custody of various crypto-businesses just got a bit easier thanks to a unique cloud-based auditing system created by Grant Thornton LLP.
System Audits More than $10 Billion worth of Crypto in 3 Months
During the first three months of 2019, auditing firm Grant Thornton LLP audited more than $10 billion worth of crypto assets. According to the firm, the audits encompassed 40 different cryptocurrencies spread across 100 million addresses.
As the cryptocurrency sector continues to expand, companies are confronted with the need to prove the existence and value of their assets. Investors and regulators are demanding to see this data on a regular basis and Grant Thornton LLP is assisting with this process.
According to Johnny Lee, the national practice leader for Forensic Technology Services at Grant Thornton, “cryptocurrency companies must contend with an auditing challenge that is at once simple and complex.” Lee explained that companies need to “prove that you own and control the assets you are claiming as yours? And, second, do those assets really exist- and can you prove as much?”
The Proof is in the Pudding
Lee explained that each of these questions can be incredibly difficult to answer as audit trails for shared ledgers are not detailed. This means pinpointing the exact ‘point-in-time balance’ for each crypto asset can be a laborious process that requires the auditor to sift through and index transaction history.
Grant Thornton audit practice partner Markus Veith proudly said, “We’ve accomplished that at Grant Thornton [after] we’ve spent four developing technology platforms and auditing methodologies that allow us to create point-in-time balances for cryptocurrencies.”
Veith claimed that the firm’s proprietary hybrid-cloud audit platform can “independently verify what a company holds in various cryptocurrencies” and the platform complies with the industry’s strict auditing standards.
Monitoring and Verification will Help Legitimize the Crypto-Sector
Currently, the hybrid-cloud platform contains complete archival copies of 40 cryptocurrencies. Grant Thornton’s system is much more intuitive than public blockchain-explorers as it can audit a range of digital assets by testing millions of addresses at scale. The firm also developed proprietary forensic nodes for complex blockchains like Ethereum, ERC-20 tokens, Bitcoin and Bitcoin Cash.
While many retail cryptocurrency investors might be spooked by Grant Thornton’s ‘big brother’ like abilities, verifying the existence and value of assets under custody is becoming increasingly important. In order for the sector to grow and gain legitimacy, regulators and institutional investors need to know that assets under management are secure and able to be audited by neutral third parties.
Do you think digital asset verification will help to legitimize the crypto-market? Share your thoughts in the comments below!
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