Kraken CEO: Merkel's proof of reserves does not include the total liabilities to customers, which is meaningless

2022-11-26 17:20:39

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ChainCatcher news, Kraken CEO Jesse Powell tweeted that a complete proof of reserves audit must include the total liabilities to customers, user-verifiable cryptographic proofs (indicating that each account is included in the total), and signatures proving the custodian's control over the wallets. "Merkle tree proof of reserves does not include total customer liabilities; otherwise, it is meaningless."

Earlier reports indicated that Binance announced the launch of an asset reserve proof system, utilizing a Merkle tree data structure, which will push the transparency of user assets into a new process. At the initial launch, the system will provide proof of user BTC assets, with plans to gradually support more assets and networks in the coming weeks. (source link)

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Merkle tree proof of reserves Kraken

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