Proof of Reserves
Proof of reserves is an exchange publishing cryptographic evidence it holds customer funds — typically a Merkle tree of balances plus wallet signatures pro
Proof of reserves is an exchange publishing cryptographic evidence it holds customer funds — typically a Merkle tree of balances plus wallet signatures proving control. Post-FTX, it became table stakes for centralized platforms claiming solvency.
Why it matters
Reserves without liabilities prove nothing — an exchange can hold $1B and owe $2B (FTX’s lesson), which is why proof-of-reserves *plus* proof-of-liabilities is the actual standard to demand. Treat solo reserve attestations as a good start and an incomplete answer; the complete answer is still “withdraw to self-custody.”