Auditor Profile - Moore JHB
Moore (Johannesburg) (“Moore JHB”) is a leading audit and accountancy firm and a member of Moore Global, one of the world’s top 11 global accounting networks. With deep expertise in servicing the digital asset industry, Moore JHB supports leading cryptocurrency exchanges and blockchain-based businesses. Through its global affiliation and specialized knowledge, Moore JHB enables clients to demonstrate transparency to their users and maintain compliance with relevant regulatory requirements.
Challenges
Moore JHB was engaged to perform a proof-of-reserves (PoR) attestation for a global, Top 20, cryptocurrency exchange, Luno. The client required an independent attestation by a Chartered Accountant over their digital asset reserves to reinforce customer trust and meet regulatory expectations. Moore JHB faced several challenges:
- Retreiving historical digital asset balances for 35 different assets residing on 8 different blockchains as of the Proof of Reserves “snapshot” date
- Proving ownership of 100+ wallet addresses and accounts
- Extracting a complete list of customer liabilities from the exchange’s database
- Exposing the full liability set to Luno’s customers, enabling them to participate in verifying their own account balance.
Solution
Moore JHB utilized LedgerLens to streamline and enhance the Proof of Reserves process. Key features of the LedgerLens platform utilized were:
Auditors Workbench Module
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- Historical Balance Module: Enabling Moore to extract digital asset balances of all 35 assets residing on 8 different blockchains, including EVM-based chains, Solana, and Tron, as of the appropriate Proof of Reserves snapshot date across 10+ blockchains.
- Prove of Ownership Module: Moore was able to prove ownership of 100+ wallet addresses and accounts using “send-to-self” transactions and digital signatures to prove that their client actually controlled the wallets they purported to.
Merkle Tree Module:
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- Customer Liability Summary: Moore was able to quickly summarize and review key data points from the exchange’s full list of customer liabilities in scope for the Proof of Reserves.
- Merkle Tree Generation: With the set of customer liabilities, Moore was able to use LedgerLens to generate a Merkle Tree, which is a way of exposing the full set of customer liabilities in an anonymized way.
- Customer Verification Portal: Using LedgerLens, Moore was able to expose the full set of customer liabilities to Luno’s users, enabling them to participate in the verification process using a Merkle Tree.
Onboarding to LedgerLens
Moore onboarded to the LedgerLens platform, quickly subscribing to the Leader package based on their technical needs. The onboarding process was as simple as creating an account, selecting a subscription plan, and reviewing a few user guides available within the LedgerLens portal.
- Onboarding: Moore was quickly able to begin using all modules “out of the box” without the need for custom integrations in a matter of minutes.
- Support: Whenever questions did arise, Moore and the LedgerLens had a dedicated chat to ask questions or provide clarifications to executing a Proof of Reserves engagement. With LedgerLens’ team of experienced CPAs, discussions were often times about methodologies for the PoR rather than the system itself!
Delivering Exception Results
Using LedgerLens, Moore was able to deliver a unique and technically challenging engagement in a risk-reduced way and in a fraction of the time.
- Engagement Time Reduction: With LedgerLens: Auditor’s Workbench tools, Moore was able to retrieve balances atleast 10x faster than searching on an explorer and rolling back digital asset balances.
- Enhanced Accuracy: With unreliable explorers and rollback techniques, accuracy is always a question. With LedgerLens, Moore was able to pull accurate data from a proven platform.
- Open New Opportunities: Without LedgerLens, Moore would be unable to execute a Proof of Reserves engagement. LedgerLens has enabled Moore to offer new services to it’s clients in a budding and promising industry.
Auditor's Perspective
LedgerLens has revolutionized our approach to servicing digital asset clients. Not only can we complete our “traditional” financial statement audits in a fraction of the time, but we are also able to offer new transparency services to an industry that desperately needs transparency and compliance services. LedgerLens an indispensable tool for any accounting or audit firm in this space.
Conclusion
Using LedgerLens, Moore JHB has delivered 8 Proof of Reserves attestations for Luno, which are performed on a monthly basis.
Moore JHB’s successful use of LedgerLens underscores its value for modern audit practices that look to capitalize on new opportunities presented by digital assets. By leveraging the platform, Moore JHB was able to meet tight deadlines, deliver exceptional results, and set a new benchmark for digital asset transparency.
