Latest News

According to Changpeng Zhao, Binance’s verification of reserves involves “no negative balances”

Binance’s founder and CEO, Changpeng Zhao, stated on Saturday that the exchange’s proof of reserves (PoR) have “absolutely no negative balances involved” following the publication of the PoR.


Kraken CEO and cofounder Jesse Powell tweeted on Saturday that Binance’s asset statement was “pointless without liabilities.”

“The merkle tree is just hand wavey bullshit without an auditor to make sure you didn’t include accounts with negative balances,” Powell wrote in the tweet.

Zhao said that the foregoing PoR would be audited and that Binance’s PoR did not apply to accounts with negative balances.

Zhao stated that it takes some time for independent auditors to finish their task.

Since the demise of FTX earlier this month, the release of proof of reserves has been advocated as a way for exchanges to guarantee the safe custody of users’ assets.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.