{"id":37466,"date":"2022-12-23T06:07:12","date_gmt":"2022-12-23T06:07:12","guid":{"rendered":"https:\/\/lydian.io\/?p=37466"},"modified":"2022-12-23T06:07:14","modified_gmt":"2022-12-23T06:07:14","slug":"be-very-careful-about-crypto-proof-of-reserve-audits-sec-official","status":"publish","type":"post","link":"https:\/\/lydian.io\/be-very-careful-about-crypto-proof-of-reserve-audits-sec-official\/","title":{"rendered":"Be \u201cVery Careful\u201d About Crypto Proof-of-Reserve Audits: SEC Official","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"
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A senior official at the US Securities and Change Fee has warned traders to be \"very cautious\" about counting on a crypto firm's \"proof-of-reserves.\"<\/p>\n
\"We warning traders to be very cautious about some claims made by crypto corporations.\" said<\/a> SEC Performing Chief Accountant Paul Munter in an interview with the Wall Avenue Journal on Dec. 22. <\/p>\n Numerous crypto companies have commissioned proof-of-reserves audits since crypto alternate FTX collapsed to deal with issues in regards to the monetary well being of their very own alternate. <\/p>\n Nevertheless, Munter mentioned the outcomes of those audits will not be essentially an indicator that the corporate is in good monetary form.<\/p>\n \"Buyers mustn't put an excessive amount of religion within the mere undeniable fact that an organization says it has an announcement of reserves from an accounting agency.\"<\/p>\n He additional added that these reserve proof reviews \"lack\" adequate info for stakeholders to find out whether or not the corporate has adequate belongings to fulfill its liabilities. <\/p>\n Munter additionally lately spoke on the Affiliation of Worldwide Licensed Skilled Accountants convention in Washington, DC on December 12, the place he allegedly<\/a> expressed frustration with the ever-evolving construction of crypto companies. <\/p>\n Munter suggested the WSJ that if the SEC uncovers \"inconvenient\" truth patterns, it could refer the matter to the Enforcement Division for additional assessment.<\/p>\n Associated:<\/strong> Proof-of-Reserves: Can Reserve Checks Keep away from One other FTX-Like Second?<\/strong><\/p>\n