Proof of reserves is an audit methodology adopted by cryptocurrency exchanges within the aftermath of FTX’s collapse to show that the custodian, on this case, OKX, is not lending out buyer funds, as FTX did, and has the property it claims to carry on behalf of its customers. They’ve, however, been criticized for not offering details about liabilities and inner qc, a focus within the crypto group. As an example, Binance’s current proof of reserves report from French audit agency Mazars was criticized for lack of particulars about the best way trade liquidates property to cowl margin loans.

Source link