Casestudier
Reading proof of reserves without illusions
After FTX many platforms publish proof of reserves. It is an improvement, but most publications show only half the story.
How it works technically
A platform publishes asset addresses and builds a cryptographic tree of customer balances so each customer can verify inclusion privately.
It also proves key control, typically by signing a message.
The blind spot: liabilities
Showing assets is easy; showing all liabilities is not. A platform with loans or off-tree obligations can look reserved and still be insolvent.
Without external verification of completeness, reserves only prove funds existed at one moment.
- Assets: relatively easy to show
- Liabilities: reliable only with external checks
- Snapshot: valid for that date only
Attestation versus audit
An attestation confirms data matched what management provided; an audit assesses internal control and completeness.
Read who produced the report and what limitations it states.
What you can verify yourself
Check your own balance appears in the tree, how often reports appear and whether the same party reports consistently.
Combine with licensing, segregation and whether an own token backs anything.
Ofte stilte spørsmål
What is proof of reserves?
A publication showing a platform held enough assets at a moment in time to cover customer balances.
Why is that not enough?
Liabilities can stay out of scope, so reserves say little about solvency without independent verification.
Should I self-custody then?
For long-term holdings, yes; keep only trading balances on a platform.
Les videre
FTX: reputation is not proof of reserves
The structure behind FTX's collapse, Alameda's role and the controls the industry adopted afterwards.
Mt. Gox: how 'not your keys' became a saying
How the largest bitcoin exchange of 2014 collapsed, what went wrong in custody and which lessons still apply.
Celsius: the lesson on yield without a source
How a high-yield crypto savings platform collapsed, where the money actually came from and how to spot similar constructions.