Quote from: seejeffrun on March 01, 2014, 06:34:38 PM

Btc-e.com is another exchange that is running fractional reserve

So somebody is guilty until he can prove that he is not? You just made a statement, that is not true. You could ask "Does btc-e have a fractional reserve" or "It is likely, they have a FR", but so?

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Until a bitcoin exchange/business passes an audit by an outside/independent body (and continues to do so at regular intervals), why should we assume anything but that this business is insolvent, running fractional reserve, or misappropriating funds in some other way?

There are ways a 100% reserve can be proven without a third party.
There are always two steps:
1. How many btc they have? This is simple, they can just sign addresses with coins.
2. How many btc they owe to customers? This is tricker, because they don't what to kill any privacy. So they can just publish a list with all accounts and btc on it, where the accounts are in an random id, which only the account owner has.

But doing the same with dollars or euros? I don't have a way...