Controversial Blockchain Project Tezos To Be Audited By ‘Big Four’ PwC
Controversial blockchain project Tezos announced on Monday, July 23 that it will be subject to an external audit by international account firm PwC.
The international professional services giant PricewaterhouseCoopers Switzerland (PwC) will be conducting an external audit of its finances and operations of the Foundation in an effort to increase transparency.
PwC is a highly recognized firm and coined as one of the “Big Four” global accounting firms.
Tezos to be audited by PwC
Since its launch, Tezos has never been far from controversies, hence its decision to be externally audited by one of the “Big Four” companies.
This announcement is the first of a large-scale blockchain project being externally audited by one of the Big Fours. The official announcement made by Tezos Foundation on Monday, July 23 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 explained that PwC will act as an external auditor and examine at the organization’s finances and operations, which has been subject to criticism.
An audit from PwC should be enough to allow Tezos community to “trust [their] operations and use of finances,” the Foundation added.
Why Tezos needs the audit
Through its ICO conducted in July 2017, Tezos has managed to raise about $232 million in Bitcoin and Ethereum- the largest ICO by amount raised at that time.
After a successful ICO, many expected that the project becomes an instant success in the blockchain industry. Instead, the project launch was delayed, which didn’t sit well with the community and investors.
Not long after, there was a fallout reported between the founders of Tezos – Arthur and Kathleen Breitman and Johann Gevers
Still, in 2017, Tezos and its founders, Arthur and Kathleen Breitman, were faced with three class-action lawsuits in the United State.
The lawsuits alleged the founders of Tezos for Federal Securities Law Violations and that the fundraisers defrauded participants through its ICO.
Tezos Foundation has hardly gotten anything right since its ICO. Riddled with controversies and lawsuits, Tezos has been trying to make amends which led to a beta network launch on June 30, 2018, now the foundation describes itself as a “self-amending” blockchain.
PwC: Good Choice by Tezos Foundation
PwC has been active in the blockchain space over the last several years, through this time, the company has clearly demonstrated an understanding of blockchain and cryptocurrency.
In March this year, PwC announced plans to launch a blockchain auditing service for businesses in the crypto industry.
PwC collaborated with U.S. custody bank Northern Trust, which now allows auditors to access information stored on its private blockchain.
In May, the company announced that it had acquired a minority stake in Chinese blockchain startup VeChain that specializes in anti-counterfeiting, supply chain management and the Internet of Things (IoT).
PwC has an outstanding record in dealings with blockchain projects, and an audit from one of the Big Four should help in building the confidence of investors towards blockchain and cryptocurrency projects like Tezos.