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 studies have, nonetheless, been criticized for not offering details about liabilities and inside quality control, a focus within the crypto neighborhood. As an example, Binance’s current proof of reserves report from French audit agency Mazars was criticized for lack of particulars about the way in which alternate liquidates belongings to cowl margin loans.
