Binance Proof of Reserves: Doubts Linger 10 Issues Later

Binance releases its tenth PoR report, drawing much of the same concerns.

Changpeng Zhao looking done with all the new papers.
Created by Kornelija Poderskytė from DailyCoin
  • Binance has released its tenth PoR report.
  • Concerns remain over the exchange’s transparency despite the latest report.
  • The firm’s legal troubles heighten these concerns.

Following the collapse of FTX in November 2022, cryptocurrency exchanges have taken more steps to improve transparency and rebuild trust, including publishing Proof-of-Reserve (PoR) reports. 


Binance, the world’s largest crypto exchange, has regularly published PoR reports in line with this effort since November 2022. But even after ten reports, doubts remain about the exchange’s transparency and solvency.

Binance Releases 10th PoR

Binance has released its tenth PoR report, asserting that the presented data was accurate as of Friday, September 1. The report uses a Merkle Tree combined with zk-SNARKs to allow users to see and verify their balances on the exchange.

Per the latest PoR, the leading crypto exchange holds over 1:1 reserves for at least 31 of its over 350 supported assets. These holdings include 618.12k BTC, 4.09 million ETH, 34.5 million BNB, and 18.2 billion USDT.

While the data suggests that the exchange has more than enough reserves to cover customer withdrawals, concerns remain about its transparency.

Lingering Doubts

Amongst other claims, Ikigai Asset Management founder Travis Kling pointed out that the exchange had again failed to offer proof of customer liabilities. This issue has been pointed out with Binance’s PoR from the beginning by notable voices like Kraken co-founder Jesse Powell.

Proof of liabilities discloses a firm’s obligations to its customers. This component is necessary in PoRs as users and investors can not gauge a firm’s solvency if it fails to disclose its liabilities. 


Recent legal troubles further compound concerns over Binance’s business and lack of transparency. In June 2023, the U.S. SEC filed 13 charges against the exchange, accusing it of routinely commingling customer funds.

On the Flipside

  • Binance’s PoR was self-verified, meaning an independent auditor did not verify it.
  • Binance has refuted claims from the SEC that it routinely commingled customer deposits with corporate funds.

Why This Matters

PoR reports are meant to rebuild user trust in crypto exchanges, but after ten reports, Binance’s reports continue to raise questions.

Read this to learn more about the concerns surrounding Binance:
Binance Executive Exodus Continues as Russia Chiefs Bow Out

Recent MATIC transfers to Binance sparked speculation that the Polygon Foundation is selling. Find out more:
Polygon Execs Refute $6M MATIC Binance Transfer Accusations

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.