Binance Releases Proof-of-Reserves System

Binance has released its proof-of-reserves system, starting with bitcoin, in order to show that the exchange is healthy and solvent. From a report: This comes just weeks after rival exchange FTX collapsed, after seemingly swapping user funds for other, more illiquid tokens -- eventually leading to a liquidity crisis. Binance's goal is to show that it holds its users' assets in the same tokens that they have deposited. For bitcoin, Binance has provided a snapshot of account balances and the exchange's bitcoin reserves. It claims it has 582,485 bitcoin in its reserves, while its users have a net balance of 575,742 bitcoin -- giving it a margin of 6,743 bitcoin. It also provided a link for Binance users to verify their own bitcoin on the exchange.

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