Proof of Reserve Audits: Smoke, Mirrors, or Real Transparency?

Coinbase, a publicly listed company, claims it is subject to quarterly external auditor review. The exchange files annual audited financial statements with the SEC in February.

Kraken, the third largest exchange, says that “trusted auditors” conduct its Proof of Reserves (PoR) audit twice per year. However, the only available PoR reports are dated June 2022 and December 2021. Both were conducted by the same audit firm, Armanino LLP.