Proof of Reserve can say something about amount reserved

Listen to this article Proof of Reserve can say something about amount reserved

Follow the flow of events

  • may have been moved from the exchange to the cold wallet right before the asset declaration
  • Research experts claim that the exchange may be dealing with customer funds and also be in debt

Recent upsetting events have rocked the crypto ecosystem, which subsequently led exchanges to post proofs of their reserves, such as On November 11, Kris Marszalek, CEO of, tweeted that the company's stock check is ongoing. 

However, the exchange later released details about the asset, which Marszalek claims is in the cold wallet. Following this revelation, new reports have surfaced that may have “rushed” to move its funds away from exchanges after Binance CEO CZ suggested this approach.

Onchain proof

Synthetix Protocol Contributor (SNX) and crypto researcher Adam Cochran informed the community of an Etherscan transaction that could have put in bad shape. According to Cochran, the configuration of the exchange wallet shows signs of being unreliable. appears to have listed multiple assets on various exchanges. According to an Etherscan transaction, sent 1,500 ethereum [ETH] from its cold wallet three hours ago. The same cold wallet also transferred assets to Deribit,, Binance, and Huobi during the same period.

Source: Etherscan

Doubts are based on the exchange's claim that user assets are safe in cold wallets. Meanwhile, the entries were sent through a deposit contract address created less than three months ago.

Interestingly, Cochran is not alone in alerting the crypto community to this transaction. Another researcher from GMB Ventures, blockchain news portal Churchupcontrol, is able to use client funds for arbitrage.

According to him, the exchange exploits the price difference between Binance and to make “risk-free” money. He also added that recently took action ten hours ago.

This means that exchanges quickly revise their public asset declarations to save space. As a result, client funds are also at risk of being misused.

Source: Etherscan

Loans, accidents and others

Additionally, Churchupcontrol stated that the FTX incident caused to make a hasty decision. According to Nansen, you will recall that their reserves proved to be debt-free. However, according to FTX monitoring, the panic led to changes in its margin table details.

This also includes interest on loans. As a result, the investigator noted that the exchange may be holding less assets than he claimed. Recently, announced a surprise move towards

At the time of publication, CZ appears to have received the above information. The Binance CEO responded by saying that it was a clear sign of trouble if the exchange had to move funds before announcing the assets. Meanwhile, neither the official account nor the CEO of the exchange have responded to this development.

Nov 13, 2022

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