Proof-of-reserve reports routinely touted by crypto firms to assure customers that their financial transactions are in secure hands shouldn’t be trusted, according to the U.S. organization that oversees auditing standards.
The Public Company Accounting Oversight Board (PCAOB) – an industry-funded watchdog working under the authority of the Securities and Exchange Commission – said the reports that tally reserve holdings as proof a company is protected against financial runs don’t provide “meaningful assurance.” They’re not audits, the board said in a Wednesday statement, and they don’t comply with any particular standard.
Source: Crypto Sector’s Reserve Reports Can’t Be Trusted, Says U.S. Audit Watchdog
