Post
Topic
Board Altcoin Discussion
Re: How can CEX's prove their solvency?
by
Xal0lex
on 24/12/2022, 19:40:58 UTC
What I dont uderstands is, how can we know which tests will demonstrate the solvency of a centralized crypto exchange? Who is to say that funds cannot be shifted at any time, like SBF did from FTX to Alameda?

I don't particularly trust these confirmations of reserves from various exchanges, just as I don't trust their trading volumes. All these figures may be greatly exaggerated and created only to reassure clients. Every week I see another news that some other exchange has confirmed its reserves. Who confirmed these reserves? The exchange itself? What was the methodology of this audit? Who confirmed it? Or did the exchange verify its own solvency? There are too many questions to these confirmations of reserves.