‘Be wary’ of crypto proof-of-reserve audits, says SEC official

Investors have been cautioned by a senior Securities and Exchange Commission official to be “very wary” when relying on a cryptocurrency company’s “proof-of-reserves”, as reported by Cointelegraph.

Cointelegraph noted that in an interview with The Wall Street Journal on December 22, Paul Munter, the acting chief accountant of the SEC, stated, “We’re warning investors to be very wary of some of the claims that are being made by crypto companies.”

Since the demise of the cryptocurrency exchange FTX, a number of crypto companies have requested “proof-of-reserves” audits in an effort to allay concerns about the stability of their own exchange.