Be ‘very wary’ of crypto proof-of-reserve audits: SEC official

Don't Be Fooled: SEC Official Urges Caution with Crypto Proof-of-Reserve Audits...

Beware of crypto proof-of-reserves         The SEC says they're not a good bet         Don't be fooled by the flash         Do your research with panache         And make sure you don't lose all your net. Are you considering investing in a crypto company? Well, you might want to think twice before relying on their "proof-of-reserve" audits.  According to Paul Munter, the acting chief accountant at the United States Securities and Exchange Commission (SEC), these audits don't necessarily mean the company is in good financial shape.  In fact, he warns investors to be "very wary" of the claims being made by crypto companies. "Investors should not place too much confidence in the mere fact a company says it's got a proof-of-reserves from an audit firm."  - Paul Munter So, what are proof-of-reserve audits? Many crypto firms have commissioned them in an attempt to calm concerns about their financial stability, especially after the collapse of FTX.  But Munter says these reports "lack" the necessary information for stakeholders to determine if the company has enough assets to cover its liabilities.  He also expressed frustration with the constantly changing structure of crypto firms and said the SEC may refer "troublesome" cases to the division of enforcement for further review. Looks like it's time to do some extra digging before investing in any crypto company. Don't be fooled by flashy proof-of-reserve audits – make sure you know exactly what you're getting into. Read the full story here on Cointelegraph. Keep up with all the most interesting events happening in the crypto space. Leverage the same AI technology that Cointelegraph's journalists use to surface the latest news with the NewsQuakes™ indicator that's only available on Markets Pro. Russell DeCorte Director Markets Pro © 2022 COINTELEGRAPH MARKETS PRO COINFIDENTIAL. Copyright © 2022 Cointelegraph Markets Pro, All rights reserved. You are receiving this email because you opted in at our website. Our mailing address is: Cointelegraph Markets Pro 21 W 46th St New York, NY 10036-4119 Add us to your address book Want to change how you receive these emails? You can update your preferences or unsubscribe from this list.