Binance releases proof of reserves

The world’s largest cryptocurrency exchange Binance released its proof of reserves (PoR) on Friday to provide transparency on user funds.

See related article: Binance says it will set up US$1 billion ‘recovery’ fund for distressed crypto businesses

Fast facts

• Binance will start the PoR feature with Bitcoin and add other tokens and networks over the next few weeks, the company said in a statement.
• The exchange will include additional assets in the next batch of PoR, as well as involve third-party auditors to audit its PoR results.
• Proof of reserves, or evidence that an exchange has sufficient funds to cover users’ assets, has become a preferred way for crypto exchanges to assure investors of safe custody following the sudden collapse of FTX.
• Exchanges CoinSwitch and CoinDCX have also made their PoR available to the public.
• See related article: Sam Bankman-Fried could face decades in jail if convicted of law violations in FTX collapse, lawyers say