Binance adds 11 tokens to PoR, claims $63B in reserves

According to an announcement connected Mar. 7, cryptocurrency speech Binance has added an further 11 tokens to its proof-of-reserves (PoR) report. These see MASK, ENJ, WRX, GRT, CHR, CRV, 1INCH, CVP, HFT, SSV, and DOGE. With the latest update, Binance says it present has implicit $63 cardinal crossed 24 assets successful its proof-of-reserves system. The largest assets connected the speech see Bitcoin (BTC), Ethereum (ETH), and Tether (USDT), with $12.7 billion, $7.1 billion, and $16.3 cardinal successful nett lawsuit balances, respectively.

Although exchanges person begun adopting the PoR method for greater transparency successful the aftermath of cryptocurrency speech FTX's collapse, experts person repeatedly warned users of the limitations of specified methodology. These see deficiency of accusation connected usage of leverage, collateralization, and corresponding proof-of-liabilities and cannot beryllium revealed unless accompanying fiscal statements supplement the PoR.

As told by Binance, its PoR "uses Merkle trees to adhd up on-chain data, truthful that users tin remainder casual knowing that their assets are held for them 1:1 successful our custody." In Feb. 2023, the speech made a large update to its PoR system, implementing zk-SNARKs, which Binance says volition " summation the privateness and information of idiosyncratic information during the verification process."

Cointelegraph antecedently reported connected Dec. 16, 2022, that South African auditor Mazars removed Binance's PoR audit from its website and ceased specified services for crypto exchanges altogether. The steadfast antecedently said connected Dec. 7 that Binance's Bitcoin and cross-chain Bitcoin assets were "fully collateralized." astatine the time. However, Mazars' besides stated that its methods were based connected "agreed-upon procedures" (AUP) and did not represent a fiscal audit. The AUP was besides constricted successful scope arsenic it did not analyse different tokens.