The FTX collapse of November 2022 emphasized the need for rigorous asset monitoring. Crypto exchanges are disclosing more about their reserves and user fund management, and platforms like Binance and Bitfinex have increased their reserves since the collapse. Major exchanges are ramping up their Proof-of-Reserve efforts, and users can now audit their reserves to ensure solvency.
However, security challenges remain, as evidenced by WazirX’s first PoR report after a cyberattack that revealed a decline in its reserves. PoR reports help users and stakeholders assess an exchange’s ability to manage funds responsibly and respond to crises.
