Proof of reserves is an audit technique 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 belongings it claims to carry on behalf of its customers. These experiences have, however, been criticized for not offering details about liabilities and inside qc, a focus within the crypto group. As an illustration, Binance’s current proof of reserves report from French audit agency Mazars was criticized for lack of particulars about the best way alternate liquidates belongings to cowl margin loans.
