Investor Advisory: Exercise Caution with Third-Party Verification/Proof of Reserve Reports
Mar 08, 2023
Crypto entities may engage a service provider to issue a “proof of reserve” report to attempt to address concerns about the safety and availability of customer assets held by various crypto platforms or institutions.
The PCAOB has issued an investor advisory highlighting the need for investors to exercise caution when relying on proof of reserve reports to conclude that there are sufficient assets to meet customer liabilities given inherent limitations associated with these reports.