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A comment on Binance outflows hit $6B as Mazars halts ‘proof of reserves’ work. Parent comment

Re:Binance outflows hit $6B as Mazars halts ‘proof of reserv... by wkdneidbwf on Saturday December 17, 2022 @12:06PM (#34029706)
these are the key points that get overlooked. i keep seeing that folks expect these brokerages to work like banks work.
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Re:Binance outflows hit $6B as Mazars halts ‘proof of reserv... by jacquesm on Saturday December 17, 2022 @12:10PM (#34029736)
The problem is that these brokerages do work like banks work but pretend that they are holding all of the reserves on the books.

They are leveraging and borrowing from the customer funds with abandon, just like a bank but without the associated regulatory oversight and rulebooks.

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