Binance proof-of-reserves shows 582K BTC to 575K BTC user balance, a 101% ratio | Hacker News Reader

Binance proof-of-reserves shows 582K BTC to 575K BTC user balance, a 101% ratio

theblock.co

28 pointsTerretta14 comments

As has been discussed to death at this point, reserves are only half the story. In order to get a sense of solvency, you'd need to understand what Binance's liabilities are. They only have calculated a tiny subset of this: user deposits.

Impossible --unless you go fully on-chain.

Sure but if you’re going to present something at least present a picture that matters. Even if it’s not provable.

It's possible. It's called auditing by a big 4 firm, which Binance will never allow because they're a fraud.

Is Coinbase a fraud?

They're not a fraud. But they do have fraudulent securities on their platform.

> These Big 4 are the four largest public accounting firms in the world:

Deloitte.

PricewaterhouseCoopers (PwC)

Ernst & Young.

KPMG.

In case nobody has heard (I hadn't)

Everyone else has.

I haven't

I haven't either

To clarify, Binance/nor anybody else are disclosing their liabilities at all, right?

Like, as a customer, you have 0 insight/auditing into whether their reserves are 1:1 with liabilities, 2:1, 1:2, etc. etc.

It's almost like... dishonest?

Saying "look! our reserves! we're above water! we're not over-leveraged! trust us!" and then hoping people are... foolish enough?... stupid enough?... to not know to ask... "ok... and liabilities?..."

Binance is pushing for global crypto regulation, which no one wants or supports.

They also have a guilt by association issue due to them being closely affiliated with FTX.

Their fractional reserve rates (which are inferior to tether) aren't likely to impress many who have been paying attention.

Good, they seem to have more than enough to cover claims.

It's interesting to me that the Bitcoin network itself is the ultimate authority for truth here.

Why is this getting downvoted? Are people upset that bitcoin seems a lot better off than all the other apparently much more centralized systems?

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