I don't know if you have ever worked with a large accounting firm but when they 'pause their activity' that means that they are not going to tie their name to yours, effectively that's as much as saying we will not go down with you. Alternative reading is that they found fraud but they don't want to be the ones to ring the bell on a customer.
Binance is an exchange that holds balances, and those balances are in their internal coin, which supposedly is backed by their reserves. But as you've been able to see in the FTX affair that isn't always true and that is exactly the bit that Mazars refuses to continue to work on. Let's assume they know more than you and I and take it as a sign.
Keep in mind that an internal stable coin ledger is just a bunch of numbers that need not necessarily be backed by anything at all.
> when they 'pause their activity' that means that they are not going to tie their name to yours
A parallel that might help people understand this is a "no recommendation" for an employee. When someone is enjoined from saying anything actually negative, silence can speak volumes.
What matters is whether or not when you add up all of reserves and subtract the liabilities that the balance is positive indicationg the firm is still solvent. If they've been leveraging or borrowing from the reserves then the proof-of-reserves process (which they themselves have created) is the only thing that they can use to shuffle the books to the point that it looks as if they are still solvent.
The way money has been routed between various accounts (both internal and external) suggests that they are using timing rather than actual reserves to make it look as though they are solvent when in fact they are not. Time will tell if that is an accurate reading of the situation.
Binance is an exchange that holds balances, and those balances are in their internal coin, which supposedly is backed by their reserves. But as you've been able to see in the FTX affair that isn't always true and that is exactly the bit that Mazars refuses to continue to work on. Let's assume they know more than you and I and take it as a sign.
Keep in mind that an internal stable coin ledger is just a bunch of numbers that need not necessarily be backed by anything at all.