Is Proof of Reserves Valid?

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A handful of exchanges are rushing to publish proof of reserves. It's basically an independent audit of third parties that aim to provide evidence a custodian holds the asset it claims to hold on behalf of its clients. Binance, Crypto.com, KuCoin, OKX, Bibit and others issued statements that they would publish their reserves. But I'm not entirely convinced just having these companies report their proof of reserves is enough transparency.

Welcome to Chain Reaction, where we unpack and explain the latest in crypto news, drama and trends, breaking things down block by block for the crypto curious.

Web3 this week really reminded us that even the best-laid plans aren’t always reliable. We tore up the script for our Thursday episode this week, which we recorded live on stage at our TechCrunch Crypto conference in Miami, and talked instead about the leaked DMs between Sam Bankman-Fried and a Vox reporter.

We shared some of the most notable quotes from the surreal, absurd exchange and unpacked why they matter. Besides what went down in the DMs, we also talked through a couple of major topics related to the FTX fallout, including:

The contagion that’s unfolded among other market makers and fund managers
What proof of reserves actually means and whether it is a viable solution for transparency from crypto companies

ICYMI, you can use the promo code REACT to get 25% off an annual subscription to TechCrunch+, where we’ve been diving deep into all the latest drama going down in the cryptoverse.

Chain Reaction comes out every Tuesday and Thursday at 12:00 p.m. PT, so be sure to subscribe to us on Apple Podcasts, Spotify or your favorite pod platform to keep up with the action.

Chain Reaction comes out every Thursday at 12:00 p.m. ET, so be sure to subscribe to us on Apple Podcasts, Spotify or your favorite pod platform to keep up with the action.