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A comment on Binance has no proof of reserves for ETH/XRP, inadequate reserves for rest. Parent comment

Re:Binance has no proof of reserves for ETH/XRP, inadequate ... by mikeyouse on Saturday November 19, 2022 @01:10AM (#33667487)
They rely on 3rd party attestations where an audit firm verifies that when eg Tether says they have $100 cash, 1 btc and 1 eth, they actually do. The issue comes when these “point-in-time attestations” are gamed by eg taking a 1-day loan the day before the statements are sent so that the cash balance qualifies.
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Re:Binance has no proof of reserves for ETH/XRP, inadequate ... by dd36 on Saturday November 19, 2022 @01:26AM (#33667570)
That would never fly with a real audit. You’d perform a triple tie out and the incoming cash transaction would have to be recorded. And you never do a single day.
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Re:Binance has no proof of reserves for ETH/XRP, inadequate ... by acjohnson55 on Saturday November 19, 2022 @01:30AM (#33667594)
Probably why very few of these organizations do real audits.
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Re:Binance has no proof of reserves for ETH/XRP, inadequate ... by pifm_guy on Saturday November 19, 2022 @01:34AM (#33667621)
The audit documents make clear they are point-in-time.

I'm sure if they could do an audit for a full year/quarter, they would. But they didn't, so they can't.

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Re:Binance has no proof of reserves for ETH/XRP, inadequate ... by dd36 on Sunday November 20, 2022 @12:11AM (#33678490)
They can. Anyone that won’t should be shut down immediately.
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