The Accounting Oversight Committee of US-listed Companies: Exercise Caution Regarding Reserve Reports from Cryptocurrency Entities

ChainCatcher News, the Public Company Accounting Oversight Board (PCAOB) stated that the review of proof of reserves by cryptocurrency exchanges is not an audit and does not adhere to any specific standards. Reporting reserves as evidence of a company's protection against financial runs does not provide "meaningful assurance." The PCAOB noted that these asset verifications are merely a simple snapshot, "not involving the liabilities of the crypto entity, the rights and obligations of digital asset holders, or whether the crypto entity has borrowed assets to make it appear as though it has sufficient collateral." (Source link)