FTX held less than $1bn in liquid assets against $9bn in liabilities, this is why “proof of reserves” means nothing. They must include info of liabilities.
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FTX held less than $1bn in liquid assets against $9bn in liabilities
What a shitshow.
After this, crypto exchanges are showing their proof of reserves to the public.
These don’t mean shit, unless they can show how much they should actually have.
Someone gave me $5, it doesn’t mean shit if I I show I have $3, when no one knows that I should have $5.
This might be a step in the right direction of being more transparent to the customers but without the full information, it don’t mean shit.
submitted by /u/brummettdane03
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